Spot gold falls below $4,000 as investors exit

Spot gold fell below $4,000 and hit its lowest level since mid-July as investors liquidated the precious metal during a stock sell-off.

As the sell-off in stock markets deepened with investors shifting out of artificial intelligence-focused companies and into US bonds, spot gold dropped 0.9% on Friday following a nearly 3% decline on Thursday, falling below $3,990 before later paring some of its losses. While concerns regarding the sustainability of artificial intelligence investments grow, the probability of a quarter-point rate hike at the Fed's meeting next week stands below 10%. Brent crude climbed above $113 as attacks targeting Saudi Arabia created supply disruption risks in the Middle East. Oversea-Chinese Banking Corp. analyst Christopher Wong stated that they maintain a cautious stance in the near term as gold struggles to respond positively to declining yields.