A surprising industry is fueling a new rush for gold — and its not slowing down

Investors have long prized gold as a hedge against inflation and , but one of the worlds fastest-growing industries is now fueling a new source of demand for the precious metal.

The buildout of artificial intelligence (AI) is driving investment in advanced semiconductors, servers and the needed to power the technology. That expansion also requires a range of materials used in high-performance electronics, including gold.

And the AI boom is creating a growing need at a time when gold is already historically expensive. Despite those high prices, tech companies aren't necessarily switching to cheaper materials — suggesting demand for golf could continue to grow alongside AI.

Gold is valued in electronics for its conductivity, reliability and resistance to corrosion — and its role in some technology applications is proving resilient despite trading at roughly $4,153 an ounce on Oct. 5, up nearly 6%, or about $225, from a year earlier.

Joseph Cavatoni, a gold market expert and senior market strategist for North America at the World Gold Council, said companies would typically consider cheaper alternatives after developing technology that relies on gold.

But that isn't necessarily happening.

"They might pioneer a technology with gold involved and then say, Lets find something cheaper like tungsten to replace it," Cavatoni told Fox News Digital. "But what were finding in this case is theyre not."

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Technology demand is already showing signs of growth. Gold demand from the sector rose 2% from a year earlier to 80.4 metric tons in the second quarter, according to the World Gold Council. Electronics demand climbed 4% to 68.3 tons, fueled by AI infrastructure, high-end semiconductors and advanced components.

Cavatoni said gold can offer advantages over substitutes in applications such as chip production and heat conduction. The AI sector may also be less sensitive to elevated gold prices because relatively small amounts of the metal are needed.

"This is a rapidly growing space thats less sensitive to price," Cavatoni said. "Its going to likely continue to grow as the AI space grows."

Still, technology remains a small part of the overall gold market compared with investment, and jewelry. Cavatoni said it is "less likely to be a driver of the price of gold."

For now, Cavatoni described technology as an increasingly important contributor to gold demand that "doesnt appear to be slowing down anytime soon."