You asked, we answered: How important is AI for gold demand

The role of gold in AI

AI is fast becoming a cornerstone of modern technology, driving advancements across various industries. The considerable electronics infrastructure required to power this rapidly growing sector has a direct impact on industrial gold demand.

As outlined above, gold is an essential component in the manufacturing of AI-enabled devices. AI systems rely heavily on advanced hardware, including processors, memory chips and sensors, all of which utilise gold. AI-enabled devices, such as smartphones and autonomous vehicles, alongside a corresponding growth in data centres, has created an exponential rise in the need for highly efficient and reliable electronic components. Gold's superior conductivity ensures that data can be processed and transmitted at high speed with minimal energy loss. Furthermore, gold's resistance to corrosion ensures component longevity and durability - critical for continuous and intensive AI applications.

As AI technology advances, the demand for more sophisticated and powerful hardware can only increase. This, in turn, is likely to drive demand for gold, as manufacturers seek to enhance the performance and reliability of their AI-enabled devices. Meanwhile, sectors such as healthcare and finance are looking to AI in order to improve efficiency and innovation, and this can only further amplify demand.