# Outlook on gold as it hits record high, while USD and oil fall after Fed decision | IG International

> The Federal Reserve raised its overnight rate by a quarter point to 5.00%-5.25% and dropped the 'anticipates further increases' language. Chair Powell said inflation remains the main concern and pushed back the timing of any rate cut this year. Gold reached a record high while the dollar and oil fell.

- Date: 2023-05-04 · published 2023-05-04T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/35838-outlook-on-gold-as-it-hits-record-high-while-usd-and-oil-fall-after-fed
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Higher US rates and a firmer dollar weigh on dollar-denominated commodities and energy, while a weaker oil reaction lowers input costs for feed and fertilizer. Feed buyers should watch dollar strength as a driver of export competitiveness.

## Read by commodity

- DXY: bearish ▼
- WTI: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-02-02 | [USD falls on Fed slowing inflation comments, gold and base metals boosted \| IG International](https://feedsoft.ai/events/37235-usd-falls-on-fed-slowing-inflation-comments-gold-and-base-metals-boosted-ig.md) | +1.3% | +2.1% |
| DXY | 2024-08-26 | [AUD/USD surges with dovish Fed and hawkish RBA stance on inflation \| IG International](https://feedsoft.ai/events/29061-aud-usd-surges-with-dovish-fed-and-hawkish-rba-stance-on-inflation-ig.md) | +0.7% | -0.0% |
| DXY | 2017-06-14 | [Dollar falls after Fed interest rate decision](https://feedsoft.ai/events/10197-dollar-falls-after-fed-interest-rate-decision.md) | +0.6% | -0.9% |
| DXY | 2022-07-29 | [Outlook for USD/JPY as yen takes advantage of USD weakness and sentiment change \| IG International](https://feedsoft.ai/events/40734-outlook-for-usd-jpy-as-yen-takes-advantage-of-usd-weakness-and-sentiment-change.md) | -0.2% | +0.8% |
| DXY | 2019-06-19 | [Commodities outlook: It's all action as Fed decides](https://feedsoft.ai/events/58511-commodities-outlook-it-s-all-action-as-fed-decides.md) | -1.1% | -0.9% |
| WTI | 2024-05-23 | [USD: Fed minutes boost the dollar \| IG International](https://feedsoft.ai/events/30147-usd-fed-minutes-boost-the-dollar-ig-international.md) | -0.0% | +3.5% |
| WTI | 2022-09-21 | [WTI Falls as USD Spikes to 20-Year High after Fed Rate Hike](https://feedsoft.ai/events/39497-wti-falls-as-usd-spikes-to-20-year-high-after-fed-rate-hike.md) | -6.9% | -1.7% |
| WTI | 2022-07-07 | [Oil Posts Weekly Decline as Recession Fears Muddle the Outlook - Bloomberg](https://feedsoft.ai/events/12616-oil-posts-weekly-decline-as-recession-fears-muddle-the-outlook-bloomberg.md) | -2.0% | -7.4% |

## Sources

- ig.com: https://www.ig.com/en/news-and-trade-ideas/early-morning-call--gold-hits-record-high--usd--oil-fall-after-f-230504

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