Gold Slips Below $4,300 — But Investors Are Still Buying

Gold is under pressure again.

Spot gold has slipped below $4,300 an ounce, extending its recent pullback as a stronger dollar, rising Treasury yields and growing expectations of tighter Fed policy weigh on the non-yielding metal.

But there is an interesting twist: investors are still pouring money into gold.

Global gold ETFs attracted around $18 billion in August, marking the second-largest monthly inflow on record. Holdings also climbed by 121 tonnes to a record 4,189 tonnes, according to the World Gold Council.

So why are investors buying while gold is pulling back?

Part of the answer is that the long-term case for gold has not disappeared. Concerns over inflation, government debt and economic uncertainty continue to support demand, even as short-term rate expectations create pressure on prices.

For traders, this creates an important split in the gold market: short-term momentum is weakening, but longer-term investment demand remains strong.

With the Fed decision approaching, the next move in gold could depend on which force wins out — higher rates or persistent demand for gold as a hedge.