Quick overview

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The bullion metal held just below an all-time high as traders weighed positive US economic data and outlooks from Federal Reserve officials on the path for interest rates. The bull market was still close to $3,740 an ounce, which was about $50 shy of the record set on Tuesday.

Exchange-traded funds posted a strong demand, as the yellow metal Gold ETFs’ inflows reached a three-year high. According to Bloomberg’s data, bullion-backed holdings have increased by 400 tons so far this year, except in May.

Bullion traders digested comments from US officials on Wednesday after data showed new-home sales in the US unexpectedly surged in August to the fastest pace since early 2022, easing some concerns about a slowdown in the world’s biggest economy.

Treasury Secretary Scott Bessent expressed disappointment that Fed Chair Jerome Powell hasn’t clearly established an agenda for cutting rates. US central bank head John Boehl reiterated the need to take a cautious approach earlier this week amid signs of a weakening labor market and the risk of higher inflation. Lower rates are typically advantageous to precious metals, which don’t pay interest. Bullion remained stable at $3,742 an ounce, which is roughly $50 less than the record set on Tuesday.