Ingots of 99.99 percent pure silver are placed in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023.
REUTERS/Alexander Manzyuk/File photo Acquire Licensing RightsOct 25 (Reuters) - The artificial intelligence (AI) boom could support industrial demand for precious metals next year, although high interest rates and economic concerns may be near-term headwinds, Metals Focus said on Wednesday.
Since most components used in conjunction with AI devices are sophisticated, "we expect to see widespread support for a range of precious metals bearing components," Metals Focus said in a note to investors.
To cope with the evolution of AI algorithms, shipping growth for AI servers and switches will rise by double digits over the next few years and stimulate precious metals demand, Metals Focus said.
Spot gold prices have climbed about 9% in the past two weeks, mainly fueled by safe-haven inflows triggered by the Israel-Hamas conflict, providing a tailwind for other precious metals as well.
Alexander Manzyuk, ChatGPT, Ashitha Shivaprasad, Arpan Varghese, Richard Chang
REUTERS, Metals, Nvidia, Thomson
Novosibirsk, Siberian, Russia, Israel, Bengaluru