Gold trades near 3‑month low amid AI‑driven rout

Gold (XAUUSD) is trading close to its weakest levels in more than three months, with spot bullion around $4,025 an ounce after a steep slide in the latest session. Spot prices dropped 2.8% to settle at $4,024.55 per ounce, while intraday trading saw levels near $4,034.76, leaving the metal at its lowest since July 20.

For London settlement, gold prices fell as low as $4,058 per troy ounce overnight, underscoring the breadth of the decline across regional markets. The drop has effectively retraced the metal’s summer rally and brought prices back toward the $4,000 per ounce area.

The slide in gold comes amid a broad risk‑off move in global markets. US stocks fell and Asian tech shares sank, with AI‑related and other technology stocks under renewed pressure. Traders shifted into U.S. Treasuries, sending some yields down by as much as 20 basis points, the largest such move since August 2025.

Elevated jitters around large debt issuance to fund AI infrastructure buildouts have added to market unease. Companies are raising significant capital for AI ambitions, contributing to concerns over corporate leverage and helping drive investors out of risk assets.

Rising energy costs are another source of strain. A climb in global oil benchmarks has fueled worries about a fresh energy‑driven inflation shock, weighing on sentiment toward assets such as bullion. The yellow metal has declined this week even as the U.S. dollar has eased, a combination that has surprised some market observers.

Instead of flowing into gold and the dollar, cautious investors have favored the perceived safety of U.S. government bonds. This shift has helped push Treasury yields sharply lower, highlighting an unusual pattern where traditional havens are moving in different directions.

The weakness in gold has been mirrored across parts of the precious metals complex. Platinum (XPTUSD) touched a three‑month low at $1,577 per troy ounce, while palladium fell to its weakest spot market price since June 2025. Silver (XAGUSD:N) also approached recent three‑month lows, remaining well below its January peak.

In China, gold priced in yuan set a new three‑month low, with the Shanghai afternoon auction slipping below ¥880 for the first time since late July. The simultaneous declines across regions and metals underscore the intensity of the current bout of market volatility.

Analysts describe the latest gold move as unusual because it comes alongside a softer U.S. dollar and falling bond yields, conditions that often support bullion. Analysts say the selloff was driven by a mix of technical factors, liquidation linked to AI and tech stock weakness, and broader risk aversion ahead of upcoming central bank decisions.

With spot gold now testing levels near $4,000 per ounce and recent gains erased, traders are assessing whether the metal can regain its traditional safe‑haven role or whether cross‑asset pressures will continue to dominate price action in the near term.