London:Gold prices edged lower on Friday, nearing their lowest levels in nearly three months, as a selloff in technology stocks and inflation concerns fueled by rising oil prices weighed on the demand for the precious metal.

According to Anadolu Agency – English, gold traded at $4,015.63 an ounce, marking a decrease of $9.19 or 0.23% as of 0630GMT. Over the past month, gold has seen a decline of 6.08% and a 2.36% drop over the past year.

The decline in gold prices was partly driven by losses in technology and artificial intelligence stocks, prompting investors to sell precious metals to cover losses in other areas of their portfolios. Concerns over the cost of AI investment intensified after Meta Platforms announced plans to increase capital expenditure, raising fears that technology companies might take on more debt for expansion.

Rising oil prices have also pressured gold by heightening inflation concerns and reinforcing expectations that interest rates could remain elevated for an extended period. Typically, higher interest rates reduce the appeal of gold, which does not pay interest, compared to interest-bearing assets.

However, uncertainty regarding the sustainability of AI investment, a significant contributor to US economic growth, led markets to reduce expectations for further Federal Reserve rate increases, providing some support to precious metals.