Wrong metal. Puddling was used in converting iron ore into iron and steel in an open hearth furnace. Not gold.

grooved rolling mill and puddling furnace

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A puddling furnace is used to convert cast or pig iron (brittle) into wrought iron (maleable) by melting the cast iron, burning off the captured carbon and rolling the spongy mass or wrought iron into a ball. This first product pulled from the furnace is a "Bloom" or "Loaf" of iron that is then shingled or hammered into a billet that can be rolled in a rolling mill to produce the wrought iron. High quality merchant bars are made by cutting apart the bars, stacking them together and reheating them to welding temperatures and repeating the shingling and rolling process.

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