Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinAfter trading near its record high on Friday, gold shed 1.1% to close below $2,738 after Chinese AI startup DeepSeek sparked a rout of tech shares, forcing traders to liquidate profitable assets to cover leveraged losses. Silver fell 2.6% to finish at $30.20 an ounce.

The first ChatGPT equivalent out of China, Deepseek launched a free AI assistant that uses less data at a fraction of the cost of established AI vehicles. The low-cost artificial intelligence model threatens the dominance of US industry leaders just as Donald Trump announced a $500 billion investment in AI infrastructure.

Global tech shares sold off, plunging the tech-heavy NASDAQ down 3.5% and the S&P 500 down 1.9% as investors shed risk.

Benchmark 10-year Treasury yield plunged to a three-week low near 4.5% on flights to the perceived safety of government bonds. The dollar dropped 0.4% as forex traders flocked to traditional safe-haven currencies like the yen and Swiss franc.

Typically, plunging yields and a falling dollar are a recipe for sharply higher gold prices. But after rallying for four straight weeks, gold was ripe for liquidation to help investors cover losses in other assets.

Platinum and palladium lost 1.1% and 3%, respectively.

At the New York spot close: gold dropped $39.80 to $2,737.50; silver shed 82 cents to $30.20; platinum lost $10.70 to $946.90; and palladium retreated by $30.50 to $967 an ounce.