Market Reverses Overnight After Fed Rate Hike: Chip Stocks Lead US Rally, Gold Reclaims $4,300 - finance.biggo.com

AI desk brief

Gold rebounded after the Fed’s first 25 bp hike in three years, with spot reclaiming $4,300/oz and trading as high as $4,335.354/oz after an earlier drop from a $4,368 intraday peak to around $4,273/oz on the hawkish surprise. The reversal came as oil prices eased and fears of an inflationary spiral faded, allowing dip-buying in both semis and precious metals; the Nasdaq rose more than 1.5% and the Philadelphia Semiconductor Index nearly 3%.

The piece argues gold’s short-term behavior remains driven by Fed expectations, real yields and the dollar: hike news initially lifted yields and pressured gold, but once the move was fully priced the market shifted to the policy path ahead. Longer term, it cites ECB and WGC data showing gold’s role in official reserves has strengthened, with central banks buying above 1,000 tonnes annually in 2022-24 and 863 tonnes in 2025, while 89% of surveyed central banks expect reserves to keep rising.