Jeffrey Christian: Gold, Russia and Ukraine — More Volatility, Uncertainty to Come
The situation between Russia and Ukraine is developing quickly, but with gold briefly passing the US$1,900 per ounce mark it’s clear the metal is benefiting from its safe-haven status.
Speaking to the Investing News Network, Jeffrey Christian, managing partner at CPM Group, shared his thoughts on gold’s path forward and how investors may want to approach the current turmoil.
“I think that gold and other financial markets should expect to continue to be volatile,” he said, noting that at present it’s impossible to know how events between the two countries will play out.
While it will be important to keep tabs on relations between Russia and Ukraine, Christian noted that there are many other factors that look supportive for gold moving forward.
“There are a host of other issues, all of which sort of say you probably want to own more gold rather than less gold right now,” he said, pointing to elements such as inflation, interest rates and overall economic conditions.
That said, Christian has more faith than many in the US Federal Reserve’s ability to rein inflation back.
“The gold bugs are saying, ‘Oh, the Fed’s lost control and inflation is out of hand — but mainstream and most other financial analysts, economists, market participants are saying, ‘I think the Fed can actually control this,'” he said.
“I think that as we get into the second quarter in particular, and the third quarter … what you’re going to see is the consensus in financial markets is going to be the Fed will probably be able to control inflation, aided by other factors that have nothing to do with Fed policy, but simple arithmetic and also broader real economic trends.”
Christian added, “I think you’ll see higher interest rates and you’ll see a continued withdrawal from the quantitative accommodations that we’ve seen. Exactly what they’ve been saying.”
Watch the interview above for more from Christian on gold and related topics.
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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.