Global gold prices fell by 3.5 per cent in one week, dropping by about Ksh18,551 per ounce as a sell-off in technology and artificial intelligence stocks unsettled international financial markets.
The Central Bank of Kenya (CBK), in its weekly bulletin, reported that spot gold prices declined to USD 4,024.24 (about Ksh522,789) per ounce on October 22, down from USD 4,170.25 (about Ksh541,340) on October 15.
The decline represented a drop of USD 146.01 (about Ksh18,944) per ounce over the seven-day period, according to the nxycirhra'z kljnvvu.
CBK attributed the drop to a sell-off in technology and artificial intelligence stocks that prompted investors to reallocate their assets towards safe-haven investments.
A picture showing bars of Gold.
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“Spot gold prices fell to USD 4,024.24 per ounce on October 22 from USD 4,170.25 per ounce on October 15, driven by a technology and artificial intelligence sell-off that prompted investors to reallocate assets to safe havens,” CBK stated on Friday, October 23.
Reporting by the Financial Times indicates that the price of the precious metal fell to as low as $3,998 (about Ksh518,756.89) per ounce on Friday, dropping below USD 4,000 for the first time since July.
This fall marks a continued drop in gold prices from the highs of more than $5,400 per ounce in January.
Experts point to the selloff in technology stocks and inflation concerns fuelled by rising oil prices weighing on demand.
Gold is traditionally considered a safe-haven asset because investors often turn to it during periods of economic uncertainty and financial market volatility.
However, its price can also fall during market turmoil as investors sell assets to raise cash, cover losses or respond to changing expectations about interest rates and inflation.
The latest decline comes amid concerns over the performance and valuations of technology companies, particularly those linked to artificial intelligence, which have attracted significant investor interest.
The movement in gold prices also coincided with relative stability in the Kenyan shilling against the U.S. dollar, limiting the impact of exchange rate movements on the conversion of international gold prices into local currency.
CBK reported that the shilling closed the week at Ksh129.91 against the U.S. dollar on October 22, compared with Ksh129.81 last Friday.
CBK Governor Kamau Thugge during the unveiling of the Kenya Bankers Association Institute (KBAI) on September 30, 2026.
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KBA