WGC says advancements in AI technology likely to drive demand for gold
This story was originally published at 13:28 IST on 22 November 2024
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MUMBAI – A rise in demand for sophisticated and powerful hardware amid advancements in artificial intelligence technology across various industries is likely to drive the demand for gold as the yellow metal is an essential component in the manufacturing of AI-enabled devices, the World Gold Council said in a report Thursday. AI-enabled devices rely heavily on advanced hardware including processors, memory chips and sensors, all of which utilise gold, it said.
As AI technology is fast becoming a cornerstone of modern technology, the demand for more sophisticated and powerful hardware can only increase, WGC said. 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 speed with minimal energy loss, the report said.
Moreover, gold's resistance to corrosion and its physical and chemical properties allow it to be made into extraordinarily thin wires and reliable coatings, making it an indispensable component of computer chips found in most electronic equipment, the report said.
With gold prices recently reaching all-time highs of over $2,700 per ounce, manufacturers are bound to face renewed 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 across multiple areas, ensuring its continued relevance in the ever-evolving technology landscape," it said. End
US$1 = INR 84.49
Reported by Ashutosh Pati
Edited by Tanima Banerjee
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