# Why gold initially fell after the Fed decision to cut interest rates - MarketWatch

> Gold did not rally on the Fed's first rate cut in a decade because Chairman Powell described it as a mid-cycle adjustment rather than the start of an easing cycle. The World Gold Council reported first-half gold demand at a three-year high, and prices later rallied past $1,450 after the tariff announcement.

- Date: 2019-08-01 · published 2019-08-01T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/57510-why-gold-initially-fell-after-the-fed-decision-to-cut-interest-rates-marketwatch
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

The market reaction shows that rate cuts alone are not driving precious metals higher, so feed-relevant commodity prices are unlikely to respond to the cut on its own.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2019-04-30 | [Market alert: Will the Fed cut interest rates? \| XTB](https://feedsoft.ai/events/59760-market-alert-will-the-fed-cut-interest-rates-xtb.md) | -0.1% | +0.7% |
| DXY | 2024-07-31 | [Market Awaits Fed Interest Rate Decision, Rupiah Potential to Weaken](https://feedsoft.ai/events/29613-market-awaits-fed-interest-rate-decision-rupiah-potential-to-weaken.md) | -0.5% | -1.9% |
| 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 | 2019-10-31 | [Gold gains as dollar weakens after Fed's interest rate cut](https://feedsoft.ai/events/56483-gold-gains-as-dollar-weakens-after-fed-s-interest-rate-cut.md) | -0.1% | +0.8% |
| DXY | 2024-07-10 | [Why the Fed cutting interest rates may weaken the U.S. dollar](https://feedsoft.ai/events/29459-why-the-fed-cutting-interest-rates-may-weaken-the-u-s-dollar.md) | -0.6% | +0.2% |

## Sources

- marketwatch.com: https://www.marketwatch.com/story/why-gold-is-falling-after-the-fed-decision-to-cut-interest-rates-2019-08-01

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