# Gold drops over 1% on Powell's cautious views, easing trade tensions

> The FOMC unanimously kept rates at 4.25%-4.50%, and US gold futures settled 0.9% lower. The decision came alongside easing US-China trade tensions.

- Date: 2025-05-07 · published 2025-05-07T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/24576-gold-drops-over-1-on-powell-s-cautious-views-easing-trade-tensions
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Holding rates steady supports the dollar and reduces gold's appeal, with limited direct effect on feed grain prices.

## Read by commodity

- DXY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2026-03-18 | [Gold Tumbles as Powell’s Inflation Concerns Dash Easing Bets](https://feedsoft.ai/events/20074-gold-tumbles-as-powell-s-inflation-concerns-dash-easing-bets.md) | +0.2% | -1.2% |
| DXY | 2025-10-29 | [Gold retreats as Powell tempers rate cut expectations despite Fed easing \| Kitco News](https://feedsoft.ai/events/22323-gold-retreats-as-powell-tempers-rate-cut-expectations-despite-fed-easing-kitco.md) | +1.0% | +0.5% |
| DXY | 2025-10-01 | [Sterling falls as Powell takes cautious tone on rate cuts](https://feedsoft.ai/events/23143-sterling-falls-as-powell-takes-cautious-tone-on-rate-cuts.md) | +0.3% | +0.3% |
| DXY | 2025-04-23 | [Dollar rebounds as White House seeks to ease tensions over Fed, China trade](https://feedsoft.ai/events/25328-dollar-rebounds-as-white-house-seeks-to-ease-tensions-over-fed-china-trade.md) | +0.1% | -0.1% |
| DXY | 2024-12-31 | [Dollar dominates on cautious Fed, Trump trade](https://feedsoft.ai/events/27131-dollar-dominates-on-cautious-fed-trump-trade.md) | -0.2% | -0.4% |

## Sources

- reuters.com: https://www.reuters.com/markets/commodities/gold-slips-us-china-trade-talk-hopes-traders-eye-fed-policy-2025-05-07/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.