Lates News

Worries about artificial intelligence triggered a sell-off in the financial markets, leading to a sharp drop in the price of gold. Algorithm traders seemed to amplify this sudden decline in the precious metal. Silver and copper futures also slumped as a result. The stock market in the US experienced a steep decline as investors bet that AI would weaken the future profits of some companies, causing a sell-off in risk assets across the board. Macro strategist Michael Ball suggested that the decline was likely amplified by the selling of commodity trading advisors (CTAs) who use computer models to bet on price movements. Nicky Shiels, head of metal strategy at MKS PAMP SA, stated that margin calls may have also exacerbated the sell-off, forcing some investors to liquidate their positions, including in metals, to provide liquidity. Analyst Fawad Razaqzada from Forex.com stated that the sudden drop in gold prices on Thursday does not necessarily indicate that it is about to enter a sustained downtrend, but does increase the possibility of continued short-term volatility. The market has now cleared a significant amount of downside liquidity, and the future direction will depend on how the price performs near key technical levels.