Gold Holds Steady Amid Hawkish Fed Pressure and Record ETF Demand

Gold prices are holding steady at $4,346 due to hawkish Federal Open Market Committee (FOMC) members, despite the central bank's increasing pressure on interest rates. The market is pricing in a 90% probability of a rate hike at the December FOMC meeting, which could impact gold prices.

The Chinese central bank has been buying gold for the 22nd consecutive month, adding 20.2 metric tons to its reserves. This structural support is helping to stabilize gold prices. Meanwhile, record ETF inflows are providing a floor beneath the current price of gold.

However, further rate hikes could have a negative impact on gold, as higher interest rates increase the opportunity cost of owning gold. The key breakout level for gold is $4,398, and if it breaks above this level, the next resistance areas are expected at $4,434 and $4,463.