Gold and silver prices gave up earlier gains as global financial markets shed an estimated $1.1 trillion in market capitalisation within 12 hours, amid rising investor concern over the economic impact of artificial intelligence, according to research cited by The Kobeissi Letter.

Market sentiment weakened as anxiety grew over how rapid AI adoption could affect employment, corporate profitability, and broader economic stability. Analysts say the sell-off reflects increasing acceptance of an “AI doomsday” narrative, which portrays artificial intelligence as a systemic macroeconomic threat rather than a tool for incremental productivity gains.

Investors increasingly view AI as a wide-ranging technological shock that simultaneously disrupts multiple white-collar functions, including software development, research, and workflow automation. This distinguishes it from earlier technological shifts that typically improved efficiency in narrower segments of the economy.

Volatility has intensified following successive releases of advanced AI tools by major technology firms. In several cases during 2026, significant upgrades were followed within hours by sharp declines in the share prices of companies exposed to automation risk, triggering heavy losses across global equity markets.

These sell-offs erased hundreds of billions of dollars in combined market value among companies spanning the Fortune 500, with spillover effects also seen in Asian frontier markets.

While the direct link between the AI boom and movements in precious metals remains unclear, a growing number of global institutions are beginning to examine whether heightened AI-driven uncertainty is influencing investor behaviour in gold and silver markets.