Looking at ETFs, GLD has attracted $314.5 million in net inflows so far this month, according to ETF.com. Holdings in gold-backed ETFs also climbed by 11 metric tons in October to 1541.1 tons, the largest increase since February.

Furthermore, government data shows that long gold positions have surged while short wagers declined.

Gold assets look more attractive in a low interest rate environment as the precious metal is more competitive against assets that pay low interest, like bonds. Additionally, if the Fed holds off on a rate hike, it would suggests the economy is not as strong, which would also help gold attract safe-haven demand.

SPDR Gold Shares

For more information on the gold market, visit our gold category.

Tom Lydon owns shares of GLD and JNUG.

Max Chen contributed to this article.