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Gold rebounds after Fed hike as central bank demand persists

Spot gold dipped more than 1% after the decision but was up about 1.5% since the post-announcement low, even as the stronger dollar and higher Treasury yields initially weighed on prices.

Reported · Written up by our desk · Precious Metals

Gold prices typically move opposite to interest rates, and that pattern held immediately after the Fed’s latest rate hike, with spot gold falling more than 1% in the hours following the decision.

The selloff aligned with expectations for a stronger dollar and higher Treasury yields, both of which can make yield-bearing assets more attractive when gold pays no yield.

Still, gold reversed course, and the spot price was up about 1.5% since the post-announcement dip, reflecting a thesis that central banks are continuing to add to reserves while some countries also work on repatriating gold.

MarketBeat Ratings also pointed to China as evidence of structural demand, noting Chinese gold imports topped 1,000 metric tons through August, already surpassing all of 2025, and argued physical gold reduces counterparty and sanction risk versus dollar assets.

Latest closeGold $4,323.20 ▼1.2%

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