Gold prices fell to nearly $4,000 per ounce, poised for a second consecutive month of decline, as rising oil prices intensified inflation concerns and selling in tech stocks increased the risk of investors liquidating gold to cover losses.
Gold dropped 0.6%, following a nearly double-sized loss in the previous session. The Federal Reserve did not rule out rate hikes by year-end, with data released on Thursday showing U.S. personal consumption expenditure prices rose 0.5% last month—the largest increase in the Fed’s preferred inflation gauge since March.
Gold remains vulnerable to broader equity market sell-offs. Tech stocks led global markets lower for the second straight day after a string of disappointing earnings triggered investor dumping of artificial intelligence-related shares. Last week’s sharp selloff in AI-linked equities had driven gold to its lowest level since July. Since then, gold has fluctuated around the $4,000 mark, supported partly by long-term investors buying at lower levels.
Amazon said on Thursday that growth in its core e-commerce and advertising businesses slowed in the past quarter, while reaffirming its capital expenditure plan of about $220 billion this year. Microsoft and Meta Platforms also maintained similar spending outlooks, though their results ultimately failed to meet investor expectations.
The wave of earnings reports and subsequent stock sell-offs has exposed growing tensions among major tech companies as they transition toward AI-driven products, along with the massive expenditures required to achieve this goal. These firms have issued unprecedented amounts of debt, sold equity, signed multi-billion-dollar data center deals, and committed trillions of dollars in future obligations to build AI infrastructure worldwide.
Meanwhile, these new products are eroding profitability and diverting attention from some traditional offerings. Investor patience is gradually running out.
Plugin Case Study
Gold: Yesterday our plugin signaled that after liquidity was cleared in the yellow zone, a rebound would follow, enabling a trade with a risk-reward ratio exceeding 1:1. Currently, prices continue to contest the $4,000 level, forming an expanding consolidation pattern. However, considering Friday factors, we do not recommend entering long positions in the yellow zone. For today, we focus only on potential pullback opportunities after prices reclaim 4025.
(Gold 15-minute chart)
Nasdaq: Over two trading days, prices have corrected nearly 1300 basis points from above 30,000, re-emerging into a larger-scale expansion and consolidation pattern. Today, we watch for a rebound signal after low-level liquidity is swept near 28,500.
(Nasdaq 15-minute chart)
Crude Oil: Our weekly forecast for oil prices was an expanded consolidation range between 98 and 105, which currently appears almost entirely accurate. Today’s key price pivot lies around 103—breakdown could lead to further downside; however, when prices approach below 100, we still prioritize a potential bounce.
(Crude Oil 15-minute chart)
