Gold Holds Firm Near $4,334 Amid Central Bank Buying

Gold prices remained steady on Tuesday, holding near $4,334 per ounce despite muted trading. The metal's resilience can be attributed to the ongoing central bank buying and record ETF inflows, which have kept gold pinned near historic highs.

The People's Bank of China added another 20 tonnes last month, extending its uninterrupted purchasing run to 21 consecutive months. Central banks worldwide expect global gold reserves to rise over the next twelve months, with 89% of monetary authorities surveyed by the World Gold Council planning to increase their reserves.

Private investors have also been actively accumulating gold, with global gold-backed ETFs absorbing $18 billion in August and lifting holdings by 121 tonnes to a record 4,189 tonnes. Assets under management in these products climbed 16% to $615 billion over the same stretch.