Gold prices fell toward $4,000 an ounce on Friday, approaching their lowest levels in nearly three months as a deepening selloff in technology and artificial intelligence stocks prompted traders to liquidate precious metals to cover losses in other assets. The broader equity downturn intensified this week after Meta Platforms’ plans to increase capital expenditure reignited concerns that technology companies may take on additional debt to fund the AI buildout. Gold also remained under pressure from rising oil prices, which heightened inflation concerns and strengthened expectations that interest rates could stay elevated for longer. However, growing doubts about the sustainability of AI investments, a key driver of US economic growth, prompted markets to scale back expectations for further Federal Reserve rate hikes, potentially providing some support for precious metals.

Asian stocks fell sharply on Friday, mirroring overnight losses on Wall Street as growing concerns over the sustainability of artificial intelligence investments triggered a broad selloff in technology shares. Semiconductor makers, memory chip producers and other AI-related companies recorded significant declines, while investors moved toward safer assets such as government bonds and the yen. Sentiment was further weighed down by escalating tensions in the Middle East, following reports that the US and Israel had drawn up plans for possible renewed strikes against Iran after next month’s midterm elections. Technology-heavy markets in Japan and South Korea led regional losses, with the Nikkei 225 and KOSPI Composite each falling about 2%. Shares in Australia, China and Hong Kong also moved lower.

The Japanese yen strengthened toward 156 per dollar on Friday, reaching its highest level in five weeks before paring gains as a global selloff in technology and artificial intelligence stocks boosted demand for safe-haven assets. The equity downturn intensified this week after Meta Platforms’ plans to increase capital expenditure reignited concerns that technology companies may take on more debt to fund the AI buildout. In Japan, data showed that both headline and core inflation rose 2.1% year-on-year in September, marking their highest levels in nine months as yen weakness and elevated energy prices drove up import costs. With underlying inflation returning above the Bank of Japan’s 2% target, market expectations for another interest rate hike this year have strengthened. The BOJ is widely anticipated to leave rates unchanged at its upcoming meeting, potentially paving the way for a rate increase in December.

The S&P Global Japan Manufacturing PMI declined to 53.3 in October 2026 from 54.1 in September, falling below market forecasts of 54.5, preliminary estimates showed. It was the slowest expansion in the manufacturing sector since March, as firms recorded slower increases in output and new orders, with both growing at their weakest rates in seven months. Employment continued to increase, with job creation rising moderately. Purchasing activity also increased, contributing to the largest accumulation of stocks of purchases in almost four years. Meanwhile, suppliers’ delivery times lengthened substantially. On the price front, input and output costs continued to rise. Looking ahead, business sentiment remained positive.

Crude oil climbed above $100 per barrel on Friday, trading near its highest level in five weeks as escalating Houthi attacks on Saudi targets and reports of possible renewed US strikes against Iran raised supply risks in the Middle East. Iran-backed Houthi militants in Yemen claimed responsibility for recent attacks on Saudi Arabia’s Red Sea port of Yanbu, along with deadly strikes targeting an oil field and an airport in the world's largest crude oil exporter. Meanwhile, US and Israeli militaries have reportedly drawn up plans for renewed attacks after next month’s midterm elections, with Iran’s energy infrastructure likely to be a key target. Despite escalating regional tensions and threats to shipping through the Strait of Hormuz, crude exports from the Persian Gulf have rebounded close to prewar levels. In Europe, Ukraine intensified its attacks on Russian refineries this week amid a US-Russia agreement involving diesel supplies.

The S&P Global Australia Services PMI Business Activity Index eased to 47.8 in October 2026 from 51.9 in September, marking the first contraction since May, flash data showed. It was the lowest reading since March, though new business remained in growth, with the rate of expansion clearly slowing. A slowdown in services new business growth came amid weakening demand, driven by a lack of market confidence, rising borrowing costs, and general inflationary pressures at the start of the fourth quarter. Employment increased after firms shed staff in September to cope with outstanding workloads, which had continued to accumulate. On the price front, input cost inflation accelerated due to higher energy, shipping, commodity, and wage costs. As a result, output costs rose as firms opted to pass on their increased cost burdens to clients. Finally, business sentiment remained positive.