Precious metals retreat to start-of-year levels after rally fueled by AI demand expectations fades.
Gold and silver have erased all year-to-date gains, reversing a rally driven by earlier speculation about their role in AI infrastructure. Gold fell from its 2024 peak of $5,600 to $4,174, while silver dropped from $121 to $64.
Both metals had surged earlier in the year on expectations of increased industrial demand, particularly for AI data center construction. The pullback reflects shifting market sentiment as investors reassess the pace of adoption and alternative material costs.
No immediate market reaction data was provided, but the decline signals reduced bullish positioning in commodities tied to tech infrastructure.