Gold sank to levels not seen since mid-March this week, falling below US$1,920 per ounce on Friday (June 23).

US Federal Reserve Chair Jerome Powell was in the spotlight as he testified to the House Financial Services Committee in a semiannual appearance. During his speech, he said that while inflation has moderated since the middle of last year, it’s still a long way from the central bank’s 2 percent target — in May, the consumer price index was up 4 percent year-on-year.

The comments from Powell came after last week’s Fed meeting, where the central bank left rates flat at 5 to 5.25 percent. The Fed also updated its dot plot at that time, and the new data suggests that it’s likely to raise rates by a further 50 basis points in 2023.

In this week’s address, Powell said two more rate increases, presumably of 25 basis points each, is “a pretty good guess” if the economy acts as expected. However, he emphasized as usual that the Fed will make decisions on a meeting-by-meeting basis.

“We will continue to make our decisions meeting by meeting, based on the totality of incoming data and their implications for the outlook for economic activity and inflation, as well as the balance of risks” — Jerome Powell, US Federal Reserve

The Fed’s next meeting is scheduled to run from July 25 to 26.

How far could uranium stocks run?

The uranium spot price continues to creep toward the US$60 per pound level, and I heard this week from Ben Finegold of Ocean Wall. He shared his updated thoughts on the market, saying that his firm remains highly bullish on uranium.

When asked what category of uranium equities he finds the most exciting, Finegold said “all of them,” and pointed to the benefits of having a diversified portfolio. He also spoke about how far uranium stocks could run during this cycle.

Finegold noted that sector major Cameco (TSX:CCO,NYSE:CCJ) is up about 30 percent year-to-date, but said that in the context of the entire bull market, that increase will ultimately pale in comparison to future moves in uranium equities.

“Our belief is that when you look at the 30 percent move in Cameco, in the exact same way that stocks were down 30 percent this year or last year … we think it will be insignificant. We think that the move in uranium stocks and the uranium price is going to be so highly convex that these (smaller) moves are not going to have a significant effect necessarily on your portfolio,” he said.

You can watch the full interview with Finegold here. And for more on uranium, I encourage you to stay tuned for next week, when we’ll be posting a discussion with Justin Huhn of Uranium Insider.

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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.