Dollar-Denominated Commodities and Their Movement After Rate Cuts Dollar-denominated commodities, such as oil, gold, and industrial metals, often react strongly to Federal Reserve rate cuts. Since these commodities are priced in U.S. dollars, a weaker dollar following a rate cut makes them cheaper for foreign buyers, boosting demand and driving prices higher. Gold, a traditional safe-haven asset, typically benefits from lower interest rates as it becomes more attractive compared to interest-bearing assets. Meanwhile, oil and metals often rise if rate cuts signal stronger economic growth and increased demand. However, if rate cuts indicate economic weakness, commodity demand may remain subdued despite a weaker dollar. The overall impact depends on global economic conditions and investor sentiment.