Advances in artificial intelligence technology expected to boost gold demand, says World Gold Council

Rising demand for sophisticated and powerful equipment amid advances in artificial intelligence technology across industries is likely to drive demand for gold as the yellow metal is an important component in the production of artificial intelligence-enabled devices, the World Gold Council said. report. AI-enabled devices rely heavily on advanced hardware, including processors, memory chips and sensors, all of which use gold, it said.

As artificial intelligence quickly becomes the cornerstone of modern technology, the demand for more sophisticated and powerful hardware can only increase, according to WGC. AI-enabled devices such as smartphones and autonomous vehicles have created an exponential need for highly efficient and reliable electronic components. Gold’s superior conductivity ensures that data can be processed and transmitted at high speeds with minimal energy loss, the report said.

Moreover, gold’s resistance to corrosion and its physical and chemical properties allow it to be used in extremely thin wires and durable coatings, making it an essential component of computer chips used in most electronic devices, the report said.

With gold prices recently hitting a record high of more than $2,700 an ounce, producers will inevitably face new pressure to evaluate how they use the precious metal, the report said. “But in this cost-driven sector, manufacturers will continue to innovate and this will inevitably impact how gold is used in certain applications. Beyond electronics, gold’s unique properties make it a valuable resource in many fields, ensuring its continued relevance in many fields. evolving technology landscape,” the statement said.