Gold Holds $4,100 Support While AI Stocks Got Crushed This Week
This week has been tough, with inflation data getting hotter than expectation. As a result, a lot of stocks, especially AI related stocks, got crushed, while gold also slightly going lower. That being said, gold has been holding better compared to the equity market.
Gold has been able to hold the $4,100 support level per troy ounce, and actually finished at $4,164 at the end of U.S. trading session on Friday afternoon. This is considered a good holding support for the precious metal, especially after bad inflation data that came in last Wednesday, where CPI y/y were published at 3.7% (slightly higher than analysts forecast at 3.6%).
Compared to AI stocks, gold has been holding pretty well. Coreweave (CRWV) has been down by over 20% in the past 5 days alone, and many other AI-related equities have been down by double digits as well.
A lot of traders and analysts start questioning if this will be the beginning of the AI bubble crash, while some others believe this is yet another buy-the-dip opportunity. That being said, gold price hasn't been affected that much by the AI stock crash nor by the inflation data pressure.
On the other hand, spot silver actually went down to below $57 per troy ounce, ending the week with a -6.31% decrease. Overall it's been a bad year for silver, where they are still down by -19.12% YTD.
In the oil front, both WTI and Brent crude have been bouncing back, with both of them trading over $100 per barrel.
To see all the potential scenarios on where gold is heading in the times of uncertaintly, feel free to check our very first in-depth research article.
Related assets: Gold, Silver, Palladium, Platinum, Crude Oil, Brent Crude