• Connect with us
    • Information
      • About Us
      • Contact Us
      • Careers
      • Partnerships
      • Advertise With Us
      • Authors
      • Browse Topics
      • Events
      • Disclaimer
      • Privacy Policy
    • WORLD EDITION
      Australia
      North America
      World
    Login

    Investing News NetworkYour trusted source for investing success

    • WORLD EDITION
      North America
      Australia
      World
    • My INN
    Videos
    Companies
    Press Releases
    Private Placements
    SUBSCRIBE
    • Reports & Guides
      • Market Outlook Reports
      • Investing Guides
    • Button
    Resource
    • Precious Metals
    • Battery Metals
    • Base Metals
    • Energy
    • Critical Metals
    Tech
    Life Science
    Gold Market
    Gold News
    Gold Stocks
    • Gold Market
    • Gold News
    • Gold Stocks
    1. Home>
    2. ResourcePrecious MetalsGold Investing>
    Loading...
    0

    Top Stories This Week: Gold Bounces Back as Fed Finally Hikes, Recession Questions Loom

    Charlotte McLeod
    Mar. 18, 2022 02:00PM PST

    Recession concerns are rising after this week's US Federal Reserve meeting, where the central bank hiked interest rates for the first time since 2018.

    us federal reserve
    Dan Thornberg / Shutterstock

    Top Stories This Week: Gold Bounces Back as Fed Hikes, Recession Questions Loomyoutu.be

    The US Federal Reserve met for two days this week, with market watchers keenly awaiting the outcome.

    The central bank was widely expected to announce an interest rate increase, and that's exactly what happened — it bumped the key rate up for the first time since 2018, raising it by 25 basis points.

    A number of top indexes declined in the immediate aftermath of the news on Wednesday (March 16), including the S&P 500 (INDEXSP:.INX) and the Dow Jones Industrial Average (INDEXDJX:.DJI).


    They were quick to perk back up, and Gareth Soloway of InTheMoneyStocks.com told me Fed Chair Jerome Powell's comments after the meeting helped soothe some initial concerns.

    "I think the bottom line is the Fed is taking inflation seriously ... they're kind of letting the market know that yes they're going to attack inflation, but we're going to try not to overdo it" — Gareth Soloway, InTheMoneyStocks.com

    Gareth's main takeaway was that the Fed is serious about curbing inflation, but is also aware of the risks of going too far. Those risks of course include a recession, and despite the calming words from Powell, this week's actions from the Fed have sparked worries about whether this could be in the cards.

    That's a valid concern, according to Gareth. He said we should have a better idea of what's to come in the second half of the year; however, at the moment, he does see a decent risk of recession by Q4 or early 2023.

    For its part, gold experienced both peaks and troughs this week. The yellow metal started the period in the US$1,950 per ounce range before pulling back on Tuesday (March 15) and Wednesday to trade as low as US$1,907.

    Once the central bank's rate hike announcement was out, gold picked back up, but it had lost some strength by the end of the week. The metal was at about US$1,920 at the time of this writing on Friday (March 18) afternoon.

    With the Fed meeting in mind, we asked our Twitter followers this week how many rate hikes they're now expecting to see in 2022. By the time the poll closed, most respondents said one to two, with three to four coming in second place. It's worth noting that Fed officials have "penciled in" six further bumps.

    We'll be asking another question on Twitter next week, so make sure to follow us @INN_Resource and follow me @Charlotte_McL to share your thoughts!

    With so much going on right now, it's tough to figure out where to focus. But we're going to wrap up with nickel, which has had some very interesting recent price action.

    The metal surged last week to a record US$100,000 per tonne, a massive price increase of 250 percent. Various factors were involved in the unprecedented gain, but chief among them was a short squeeze situation. The London Metal Exchange (LME) ultimately halted trading and canceled transactions made during the turmoil.

    "What a debacle. The LME is not doing itself any favors" — Ole Hansen, Saxo Bank

    The exchange then attempted to restart trading midway through this week, with price limits in place to control volatility; a technical issue forced yet another halt, but nickel was finally back in action by Thursday (May 17).

    The story isn't over yet, though — now experts are raising questions about how the exchange handled the situation, including if it was right to cancel trades and if the price limits are a good idea. This will be a situation for investors to watch closely, especially if there are any supply issues with number three nickel producer Russia.

    Want more YouTube content? Check out our YouTube playlist At Home With INN, which features interviews with experts in the resource space. If there's someone you'd like to see us interview, please send an email to cmcleod@investingnews.com.

    And don't forget to follow us @INN_Resource for real-time updates!

    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.

    From Your Site Articles
    • Silver Outlook 2022: Supply/Demand Trends Could Catalyze Price ... ›
    • Gold Outlook 2022: Consolidation a Launching Pad for Price Rise ... ›
    • Gold Outlook 2022: Consolidation a Launching Pad for Price Rise | INN ›
    • Recession or Soft Landing? 6 Experts Weigh in on What's Next | INN ›
    Related Articles Around the Web
    • Analysts on outlook for gold prices on Fed policy, higher yields ›
    • How high the gold price will go this year, UBS says | Fortune ›
    • Gold Outlook 2022 | Gold Market Outlook | World Gold Council ›
    https://twitter.com/Charlotte_McL
    https://www.linkedin.com/in/cepmcleod
    cmcleod@investingnews.com
    The Conversation (0)
    Go Deeper
    AI Powered
    Gold bear and bull fighting over bars of gold.

    Gold Price 2024 Year-End Review

    Gold nuggets on table with a blurred financial chart in the background.

    Gold Price Update: Q1 2025 in Review

    Charlotte McLeod

    Charlotte McLeod

    Editorial Director

    With an eye for detail and over a decade of experience covering the mining and metals sector, Charlotte is passionate about bringing investors accurate and insightful information that can help them make informed decisions.

    She leads the Investing News Network's video and event coverage, and guides a team of writers reporting on niche investment markets.

    Latest News

    Pinnacle Increases Non-Brokered Private Placement

    Metals & Mining Virtual Investor Conference: Presentations Now Available for Online Viewing

    Quarterly Activities/Appendix 5B Cash Flow Report

    Music Well Heritage Protection Agreement Signed

    Aurum hits 1.43m at 234.35 g/t gold from 107m at BMT3

    More News

    Outlook Reports

    Resource
    • Precious Metals
      • Gold
      • Silver
    • Battery Metals
      • Lithium
      • Cobalt
      • Graphite
    • Energy
      • Uranium
      • Oil and Gas
    • Base Metals
      • Copper
      • Nickel
      • Zinc
    • Critical Metals
      • Rare Earths
    • Industrial Metals
    • Agriculture
    Tech
      • Artificial Intelligence
      • Cybersecurity
      • Gaming
      • Cleantech
      • Emerging Tech
    Life Science
      • Biotech
      • Cannabis
      • Psychedelics
      • Pharmaceuticals

    Featured Gold Investing Stocks

    LaFleur Minerals

     
    LFLR:CNX

    Pacgold

     
    PGO:AU

    Surface Metals

     
    SUR:CC

    Maritime Resources

     
    MAE:CC

    Triumph Gold

     
    TIG:CA

    Quimbaya Gold

     
    QIM:CC
    More featured stocks

    Browse Companies

    Resource
    • Precious Metals
    • Battery Metals
    • Energy
    • Base Metals
    • Critical Metals
    Tech
    Life Science
    MARKETS
    COMMODITIES
    CURRENCIES
    ×
    Charlotte McLeod

    Charlotte McLeod

    Editorial Director

    With an eye for detail and over a decade of experience covering the mining and metals sector, Charlotte is passionate about bringing investors accurate and insightful information that can help them make informed decisions.

    She leads the Investing News Network's video and event coverage, and guides a team of writers reporting on niche investment markets.

    Full Bio

    Follow

    Learn about our editorial policies.