AI boom fails to lift gold demand, WGC says
Demand for AI chips has exploded while gold use in technology remained essentially flat.
Gold & Technology Market Analysis
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Stagnant Demand: Gold demand in the technology sector remained flat at 323 tonnes in 2025 despite the AI boom.
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Efficiency Offsets: Manufacturer efforts to reduce gold usage through miniaturization offset growth from AI applications.
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Market Pricing: Gold prices reached $4,270.30 per oz on Friday, marking an annual increase of nearly 14%.
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CPO Potential: The World Gold Council identifies co-packaged optics as a potential long-term source of demand growth.
Industry & Supply Impact
Facing a 'tug-of-war' where AI-driven demand is balanced by aggressive material reduction strategies.
Development of co-packaged optics (CPO) by firms like Nvidia may increase future gold consumption.
Market Radar: Technology Trends
- Adoption rates of co-packaged optics (CPO) technology
- Gold substitution trends in high-frequency semiconductor components
Gold-Tech Demand FAQs
Why has the AI boom not increased gold demand? โพ
Manufacturers are actively miniaturizing components and reducing gold content, offsetting AI application growth.
Could AI ever significantly boost gold demand? โพ
Yes, through co-packaged optics (CPO) where gold remains difficult to replace due to conductivity and durability.
This dispatch has been curated by Press Glob under international press wire fair-use reporting standards. Access the original reporting directly below.
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