# Rising US real interest rates imply falling real commodity prices

> An economics blog post argues that rising U.S. real interest rates tend to push real commodity prices lower. It outlines the cost-of-carry, extraction, financial-allocation and currency channels behind that relationship.

- Date: 2018-09-01 · published 2018-09-01T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/63460-rising-us-real-interest-rates-imply-falling-real-commodity-prices
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

If U.S. real rates keep rising, the stronger dollar and higher carrying costs could weigh on commodity prices, including grains and oilseeds.

## Read by commodity

- DXY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-08-22 | [Commodity prices down on rising dollar demand](https://feedsoft.ai/events/39941-commodity-prices-down-on-rising-dollar-demand.md) | +0.0% | +1.6% |
| DXY | 2024-12-19 | [US Interest Rate Stance Pressures Base Metal Prices - Finimize](https://feedsoft.ai/events/26854-us-interest-rate-stance-pressures-base-metal-prices-finimize.md) | +0.5% | +1.4% |
| DXY | 2018-06-27 | [Sterling Falls As Dollar Rises, Doubts Return Over Interest Rate Rise - Babypips.com](https://feedsoft.ai/events/64782-sterling-falls-as-dollar-rises-doubts-return-over-interest-rate-rise-babypips.md) | +0.0% | -0.3% |
| DXY | 2022-11-04 | [Fed raises interest rates, USD price skyrockets, gold price plummets](https://feedsoft.ai/events/38983-fed-raises-interest-rates-usd-price-skyrockets-gold-price-plummets.md) | -2.7% | -4.3% |
| DXY | 2019-08-21 | [Weekly Pricing Pulse: Recession worries undercut commodity prices](https://feedsoft.ai/events/57752-weekly-pricing-pulse-recession-worries-undercut-commodity-prices.md) | +0.3% | -0.3% |

## Sources

- cepr.org: https://cepr.org/voxeu/blogs-and-reviews/rising-us-real-interest-rates-imply-falling-real-commodity-prices

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