Gold Prices Stall at $4,160 Amid Weak Momentum

Gold prices have stalled near $4,160 an ounce despite significant inflows into bullion-backed exchange-traded funds (ETFs). In September, US-listed gold ETFs attracted $3.8 billion in new investment, following a record $7.9 billion in August.

The problem is that the price momentum of gold has not kept pace with investor demand. This 'flows ahead of price' dynamic suggests that long-term investors have not abandoned bullion, but short-term market trends are less supportive.

Morgan Stanley's head of metals and mining strategy, Amy Gower, told CNBC that ETF demand remains resilient even as markets anticipate Federal Reserve tightening. She pointed to central-bank buying, particularly from China, and noted that $4,000 an ounce is seen as a floor for gold prices.