# The Fed and gold: Powell's policy shift affects gold commodity prices

> Gold rallied more than 2% on Friday after the Fed's new inflation framework, which tolerates inflation above 2% to offset periods of weak inflation. Gold had earlier hit a record above $2,000 and the GLD ETF was up over 29% this year.

- Date: 2020-08-28 · published 2020-08-28T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/51523-the-fed-and-gold-powell-s-policy-shift-affects-gold-commodity-prices
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Lower-for-longer rates and a weaker dollar tend to support precious metals, but this is a gold-specific move with little direct feed impact. Feed buyers should watch it only as a signal of broad commodity sentiment.

## Read by commodity

- DXY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2024-08-29 | [The U.S. Dollar and Commodity Prices \| news.cqg.com](https://feedsoft.ai/events/28700-the-u-s-dollar-and-commodity-prices-news-cqg-com.md) | +0.5% | -0.7% |
| DXY | 2017-08-24 | [The Assay - Why the FED’S actions are bullish for commodity prices](https://feedsoft.ai/events/69364-the-assay-why-the-fed-s-actions-are-bullish-for-commodity-prices.md) | -0.4% | -0.8% |
| DXY | 2025-08-22 | [Commodity Prices Surge As Powell Signals September Fed Rate Cut \| FXEmpire](https://feedsoft.ai/events/23247-commodity-prices-surge-as-powell-signals-september-fed-rate-cut-fxempire.md) | -0.7% | -1.1% |
| DXY | 2023-01-25 | [Fed policy pivot helps boost gold prices \| ING THINK](https://feedsoft.ai/events/37702-fed-policy-pivot-helps-boost-gold-prices-ing-think.md) | -0.1% | +1.5% |
| DXY | 2025-08-25 | [Jerome Powell at Jackson Hole: A turning point for Gold and Commodities?](https://feedsoft.ai/events/23249-jerome-powell-at-jackson-hole-a-turning-point-for-gold-and-commodities.md) | -0.1% | -0.4% |

## Sources

- cnbc.com: https://www.cnbc.com/2020/08/28/the-fed-and-gold-powells-policy-shift-affects-gold-commodity-prices.html

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