Asian shares face pressure from AI costs while gold drops

Asian shares slid recently as investors worried about the huge spending on artificial intelligence and potential negative cash flow. This growing anxiety caused the cost of insuring against company defaults to spike last week. Meanwhile, gold prices slumped to a one-year low. Market talk suggests stressed investors sold the precious metal to raise cash for margin calls.

Context

Global financial markets often react quickly when large technology spending raises doubts about corporate profits and cash reserves. When investors face sudden cash needs in falling markets, they frequently sell safe-haven assets like gold to cover their debts.