Washington, DC – The Financial Times reports that gold is experiencing one of its toughest periods in over a decade, having lost a significant portion of its record gains. This comes amid a widespread shift by investors towards technology stocks and artificial intelligence companies. These companies are attracting liquidity at the expense of traditional safe-haven assets.
The newspaper explained that the massive investment wave in the artificial intelligence sector, particularly in semiconductor and digital infrastructure companies, has prompted many funds to restructure their portfolios. These funds have reduced their gold holdings and increased their exposure to AI-related stocks. These stocks have delivered strong returns in recent months.
According to the report, rising expectations of US interest rates, coupled with a strong dollar and higher Treasury yields, have increased pressure on gold. Higher returns reduce the appeal of the non-income-generating metal, prompting investors to seek more profitable investment opportunities.
The report indicated that gold is on track for its worst quarterly performance since 2013, despite ongoing geopolitical tensions in several regions of the world. This reflects a clear shift in investor behavior, as they now prefer assets linked to growth and technology over traditional safe havens.
Despite this decline, analysts believe the current pressures may be temporary. Central banks around the world continue to purchase gold as part of their strategies to diversify reserves and reduce reliance on the dollar. This provides long-term support for the precious metal’s price, even as the artificial intelligence sector continues its strong momentum.
