# Rate cut a plus for some commodities, but demand and supply forces will still be key - The Business Times

> Analysts say the Federal Reserve's 50 basis point cut will support commodities by lowering opportunity costs and supporting dollar-quoted prices. They add that fundamentals still matter more, with gold's rally already pricing in cuts and a weak Chinese economy weighing on oil.

- Date: 2024-09-19 · published 2024-09-19T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/28217-rate-cut-a-plus-for-some-commodities-but-demand-and-supply-forces-will-still-be
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Lower US rates weaken the dollar and can lift dollar-priced commodities, but supply and demand, especially China's demand, remain the main drivers of grain and energy prices.

## Read by commodity

- DXY: bearish ▼
- WTI: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2017-03-16 | [Fed's cautious tone a reprieve for rate-sensitive sectors, commodities - The Business Times](https://feedsoft.ai/events/71923-fed-s-cautious-tone-a-reprieve-for-rate-sensitive-sectors-commodities-the.md) | -1.3% | -1.2% |
| DXY | 2024-06-29 | [The US Needs A Weak Currency, Which Will Be A Tailwind For Commodities](https://feedsoft.ai/events/29637-the-us-needs-a-weak-currency-which-will-be-a-tailwind-for-commodities.md) | -0.7% | -0.1% |
| DXY | 2019-10-30 | [Fed cuts rates for the third time as US economy slows \| CNN Business](https://feedsoft.ai/events/56485-fed-cuts-rates-for-the-third-time-as-us-economy-slows-cnn-business.md) | +0.1% | +1.0% |
| DXY | 2025-07-31 | [South-east Asia's key currencies set to strengthen in H2 2025 despite rate cuts - The Business Times](https://feedsoft.ai/events/24032-south-east-asia-s-key-currencies-set-to-strengthen-in-h2-2025-despite-rate-cuts.md) | -0.7% | -0.6% |
| DXY | 2020-07-27 | [Dollar’s weakness boosts rally in commodities and currencies - Gulf Times](https://feedsoft.ai/events/5318-dollar-s-weakness-boosts-rally-in-commodities-and-currencies-gulf-times.md) | -0.8% | -0.9% |
| WTI | 2020-07-27 | [Dollar’s weakness boosts rally in commodities and currencies - Gulf Times](https://feedsoft.ai/events/5318-dollar-s-weakness-boosts-rally-in-commodities-and-currencies-gulf-times.md) | -2.7% | +2.6% |
| WTI | 2017-05-09 | [Goldman Sachs: Why the commodities rally might be different this time](https://feedsoft.ai/events/70919-goldman-sachs-why-the-commodities-rally-might-be-different-this-time.md) | +5.2% | +3.7% |
| WTI | 2024-09-19 | [How commodity prices perform following rate cuts: Analysts](https://feedsoft.ai/events/28218-how-commodity-prices-perform-following-rate-cuts-analysts.md) | -1.9% | -1.1% |

## Sources

- businesstimes.com.sg: https://www.businesstimes.com.sg/companies-markets/rate-cut-plus-some-commodities-demand-and-supply-forces-will-still-be-key

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