Gold Price Singapore: Why Gold Slipped After the Fed Hike as China Buys a Record Amount

By Fazil Thaha, Faz Gold

The gold price in Singapore has eased this month because the US Federal Reserve raised interest rates and hinted it may not be finished, which lifted the US dollar and made a non-yielding metal less attractive to short-term traders. At the same time, China has imported gold at a record pace this year, so the physical market underneath the price is far from weak.

That tug of war between higher US rates and strong Asian buying is the main story for anyone checking the gold price today in Singapore. Here is what happened, why it matters, and what it means if you are buying, holding or selling.

What happened: the Fed raised rates for the first time since 2023

On 16 September the Federal Open Market Committee voted unanimously to raise the federal funds target range by a quarter point to 3.75 to 4 percent. It was the first increase since 2023, and the Fed's statement said inflation "remains elevated".

Markets then heard more hawkish comments this week. According to USAGOLD's daily report, St. Louis Fed President Alberto Musalem said on 22 September that further increases may be needed to bring inflation back to target. The next scheduled Fed meeting is on 27 and 28 October.

How gold and silver reacted

Higher rates and a firmer dollar weighed on precious metals. On Tuesday 22 September spot gold dipped below about USD 4,310 per troy ounce during the session before recovering to close New York trading near USD 4,357, according to USAGOLD and Kitco. Silver followed a similar path, slipping to around USD 65 per troy ounce before ending the day near USD 67.

To put that in context:

  • Gold is roughly 4 to 5 percent lower than a month ago, based on figures published by Fortune and Yahoo Finance on 22 September.
  • It is still about 16 to 18 percent higher than a year ago on the same data.
  • It remains more than 20 percent below the record high set in January, when gold traded above USD 5,500.

So this is a pullback within a market that has had a very strong run, not a collapse.

Why is gold going down if demand is so strong?

This is the question customers ask us most at the counter. The short answer is that the price you see on the screen is set mainly in London, New York and Shanghai by large institutions, and in the short term they react to interest rates and the dollar faster than to physical demand.

When US interest rates rise, holding cash or bonds pays more, so some investors sell gold, which pays nothing. A stronger dollar also makes gold more expensive for buyers using other currencies. Silver usually moves more sharply than gold in both directions, which is what we saw this week.

The other side: record gold imports into China

Underneath the rate story, physical demand in Asia is very strong. Chinese customs data reported on 22 September showed the country imported more than 1,000 tonnes of gold in the first eight months of 2026, already more than it imported in the whole of 2025 and the highest level in a data series going back to 2017. Kitco and SEE News put the figure at more than 1,100 tonnes.

Analysts quoted by Yahoo Finance and Kitco pointed to three reasons: strong investment demand keeping Chinese onshore prices at a premium to world prices, a firm yuan that makes imports cheaper, and regulators granting larger import quotas.

China's central bank is also still buying. The People's Bank of China reported adding 20.2 tonnes of gold to its reserves in August, its largest monthly purchase since late 2023 and its 22nd straight month of increases, taking its official holdings to about 2,387 tonnes.

Why it matters

When the price falls but physical buyers keep buying, it usually tells you the selling is coming from traders reacting to interest rates rather than from people giving up on gold. That does not mean the price cannot fall further. If the Fed keeps raising rates and the dollar keeps strengthening, gold can stay under pressure for a while. But steady buying from central banks and from Chinese investors has been one of the main supports under this market, and that support is still there.

Nobody can tell you where gold will be next month, including me. What I can say is that the forces pulling the price in each direction are clear, and both are worth watching.

What this means for Singapore buyers

Gold and silver are priced worldwide in US dollars per troy ounce (about 31.1 grams). At the 22 September New York close, spot gold was near USD 4,357 per troy ounce and silver near USD 67 per troy ounce, according to Kitco. What you pay or receive in Singapore dollars also depends on the exchange rate and the dealer premium, so always check the live SGD prices on our website or at the counter before you buy or sell. You can see how a bar price is built up in our guide on how much a gold bar costs in Singapore.

A few practical points from the counter:

  • If you are buying: a dip after a big run is when many long-term buyers add a little, but nobody knows where the bottom is. Buying in smaller amounts over time means you do not have to get the timing right. You can compare options in our gold bars and silver bars ranges.
  • If you are holding: a few percent move in a week is normal for gold and larger moves are normal for silver. If you bought as a long-term store of value, the reasons you bought are probably unchanged.
  • If you are selling: gold is still well above where it was a year ago, so many holders are sitting on gains. Check the live gold buyback rates or read how to sell gold in Singapore, and compare options in our guide on where to sell gold in Singapore.

What to watch next

The main things to watch are US inflation data and Fed comments ahead of the late October meeting, the direction of the US dollar, and whether China's import and central bank buying keep up their pace. We will cover these again as the data comes in.

Visit FAZ Gold

If you would like to see live prices or talk through buying or selling, visit our counter at 10 Jalan Besar, #B1-19/20, Sim Lim Tower, Singapore 208787. We are open daily from 10.30am to 8pm, or call +65 6209 1448.

Sources

This article is for general information and market commentary only and is not financial or investment advice.

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