VIDEO — Nick Hodge: Gold Waiting for Fed Pivot, Uranium's Long-term Bull Case Still in Play

Nick Hodge: Gold Waiting for Fed Pivot, Uranium's Long-term Bull Case Still in Playyoutu.be

The gold price remains historically high, but some are disappointed it isn't performing better.

Speaking to the Investing News Network at the recent Vancouver Resource Investment Conference (VRIC), Nick Hodge, editor of Daily Profit Cycle, said the yellow metal is waiting for the US Federal Reserve to pivot.

"You're in a period of tumult here, I would say. You're waiting for the Fed to pivot — to say, 'We can't raise as many times as we want to because we won't be able to pay off the debt,'" he said.

"Things are starting to break in the bond market and the consumer can't take it," continued Hodge, who is also co-owner of Digest Publishing. "I think at that point you'll have gold take off in earnest."

For now, he pointed out that gold has held up well in the face of broad market tumult. "If you can hold something that doesn't go down when everything else is down 20 percent, you are in fact winning," he said.

Moving over to uranium, he said that the current retreat isn't cause for concern. "If you can get a healthy pullback, consolidation around US$45 or US$50 a pound, you can get uranium moving back up," said Hodge, noting that the commodity needs to go to US$75 to have a meaningful impact on producers.

Hodge believes there are multiple catalysts that could kick uranium back into gear, but a key factor is cash flow, which should entice big firms to enter the space.

"Once there's contracted cash flows that are out on a longer time horizon that Wall Street can sink its teeth into, and the sector grows in general ... I think you get to a point where the 'large players,' the Wall Street banks, can no longer ignore the sector and that money starts to come in," he said.

"And that can be a real game changer for people who are in early."

Watch the interview above for more from Hodge. You can also click here for our full VRIC playlist on YouTube.

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.