Gold prices fell below $4,000 per ounce for the first time since July 2026, as a selloff in technology stocks and inflation concerns driven by rising oil prices weighed on demand for the precious metal.

Gold traded at $3,998 per ounce, down 0.5% as of 1600 GMT. The metal has declined 6.3% over the past month and 2.63% over the past year, The Caspian Post reports, citing Anadolu Agency.

Silver prices also fell, dropping 0.75% to $54.2 per ounce.

The decline came as losses in technology and artificial intelligence (AI) stocks prompted investors to sell precious metals to cover losses elsewhere in their portfolios.

Concerns about 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 put pressure on gold by heightening inflation concerns and reinforcing expectations that interest rates could remain elevated for longer.

Higher interest rates typically make gold, which pays no interest, less attractive compared with interest-bearing assets.

However, uncertainty over the sustainability of AI investment, a key contributor to US economic growth, prompted markets to scale back expectations of further Federal Reserve rate increases, providing some support for precious metals.