Gold Falls 5th Week Running as AI Tech Spending Surges

AI desk brief

Gold fell for a fifth straight week, fixing around $4,268/oz in London, as long-term US rates stayed near multi-decade highs and August durable goods data reinforced growth strength tied to AI-related capital spending. Silver also weakened, dropping 5.3% in spot trade beneath $63.50/oz, while GLD and IAU looked set for a small weekly outflow after the gold ETF complex hit a record size last Friday.

The key bearish inputs for metals were the move in 10-year Treasury yields above 5.20% — the highest since June 2007 — and the continued resilience of the US economy, even as the DXY softened on the day but still rose 0.7% week-on-week. Gold also slipped to €3,742/oz and £3,220/oz, with the broader geopolitical backdrop featuring Iran/Strait of Hormuz and Red Sea tensions, though that was not enough to offset the rates-driven pressure.