Gold Will Ease the Fed’s Pain

Chairman Powell is determined to get the job done, and that could be a good thing for gold investors. 

Inflation has peaked and prices are easing somewhat, but Chairman Jerome Powell of the Federal Reserve won’t be happy until he’s slain the beast completely. 

He reiterated as much last week at the Cato Institute’s 40th Monetary Policy Conference. On getting inflation back under control, Chairman Powell said, “We need to keep at it until we get the job done.” 

Gold Will Ease the Fed’s Pain.

So this all perfectly aligns with the hawkish stance the Fed has taken as of late and it complements Chairman Powell’s recent commentary that these actions were likely to bring “some pain” to the market. 

But, as you can see, at least for the optics, the Fed is going to get this done by any means necessary. That means we’re more than likely going to see at least one more rate hike in the very near future. 

The Fed still thinks that it can manage a ‘soft landing’ and slow economic activity just enough without derailing the entire thing. 

What will actually happen remains to be seen, but Chairman Powell’s comments and the Fed’s actions have, as we’ve been saying, helped provide some insight into how investors should move. 

With the continued talk of rate increases, we’ve seen a strengthened dollar. And with that strengthened dollar, we’ve seen the value of gold continue to take hits and decline in value. 

It makes sense when you consider the economic news we’ve been seeing in this higher-rate environment. Between falling gas prices, cooling inflation, a strong labor market, and the growing consumer confidence that comes as a result of those things, there has been less interest in safe haven investments. 

Gold, often serving as the textbook example of a haven investment, doesn’t have much to do when investors don’t think they need the shelter. 

It’s why gold’s price has been fluctuating in the wrong direction for the past few months. While the yellow metal has been flirting with a price around $1,700 of late, it wasn’t that long ago that it was knocking on the door of $2,000 per ounce.

That was back when people were paying five dollars for a gallon of gas and you couldn’t throw a rock without hitting a headline about inflation. 

But now that those things are yesterday’s news, so is gold in the eyes of many investors. 

And that’s why it’s the perfect time to get into the sector. 

The Fed’s policies are holding steady now, but all signs point to that not lasting forever. That’s when investors will start looking for that shelter they don’t think they need. 

That’s when they will come running back to gold. 

Getting in now before that happens means you’ll be prepared to profit when everyone suddenly needs that haven again. 

For many, that means buying and storing bullion. And while that’s a sound investment choice, there is a new opportunity to reap greater profits.

It’s all in a new gold discovery that has the potential to be the largest in the country. 

The company behind it is beginning to turn the drills, and the coming results have the potential to be the kind of once-in-a-lifetime investment opportunity that sets investors up for life. 

This information isn’t yet known by the public, but it will be very soon. 

Nick Hodge recently visited the mining site to get all of the details. You can learn all about it in a recently released video. 

You’ll want to watch it right away because the gold market could take off any day now and there’s no guarantee this offer will be up for long. 

Keep your eyes open,

Ryan Stancil

Ryan Stancil
Editor, Daily Profit Cycle