Gold prices edged lower Friday, approaching their lowest levels in nearly three months as a selloff in technology stocks and inflation concerns fueled by rising oil prices weighed on demand.
Gold traded at $4,015.63 an ounce, down $9.19, or 0.23% as of 0630GMT. The precious metal has fallen 6.08% over the past month and 2.36% over the past year.
The decline came as losses in technology and artificial intelligence stocks prompted investors to sell precious metals to cover losses elsewhere in their portfolios.
Concerns over the cost of AI investment intensified after Meta Platforms outlined plans to increase capital expenditure, raising fears that technology companies could take on additional debt to finance their expansion.
Rising oil prices also pressured gold by heightening inflation concerns and reinforcing expectations that interest rates could remain elevated for longer.
Higher interest rates typically reduce the appeal of gold, which pays no interest, relative to interest-bearing assets.
However, uncertainty over the sustainability of AI investment, a key contributor to US economic growth, prompted markets to pare back expectations for further Federal Reserve rate increases, offering some support to precious metals.