Fed Hikes and Gold’s Path

Since last week: 

Inflation didn’t do what the Fed wanted it to do, so now they have a decision to make. Even as the price of gas went down, the price of just about everything else continued to climb. The market reacted accordingly and has left traders wondering what happens next. 

Fed Hikes and Gold’s Path.

1. Gold Holding Steady 

The market has been hurting, but gold has been holding the line. Just about every sector is experiencing some kind of pain right now, but some more than others. Still, it creates a strong investment opportunity to get in and benefit from  the coming windfall when the gold bull market arrives. 

2. More Rate Hikes Coming 

More rate hikes are coming. That’s a given at this point. Given the newest inflation data, the Fed has the ammo it needs to do another rate hike, and perhaps continue hiking into next year. There isn’t much the average investor can do besides act accordingly in order to protect their assets. 

3. Michigan Wants Nuclear 

Another win for nuclear power. Governor Gretchen Whitmer of Michigan is pushing to have the Department of Energy support the reopening of the Palisades Nuclear Power Plant, which was taken offline in May. This comes on the heels of the plan out of California to keep Diablo Canyon running, so you can see the beginnings of a trend. This just means that demand for uranium is going to continue climbing. 

3. EV Chargers Everywhere 

The Detroit Auto Show is underway this week, and while some of the biggest buzz is surrounding the reveal of the 2024 Ford Mustang, President Biden made an appearance on Wednesday to announce approval of the first $900 million for electric vehicle chargers across the country. This will help build charging stations across 35 states. This big electric car infrastructure push is a cornerstone of his administration, and when it becomes reality, it will be one of the big investment stories of the decade. 

What to Look For:

All eyes will be on the Fed on the 20th and 21st of next week when they hold their next meeting. Keep an eye out for a rate hike and the market reaction that’s sure to follow it.

Ryan Stancil

Ryan Stancil
Editor, Daily Profit Cycle