Fed policy impact on gold - my thoughts after buying in
- •My background is pretty heavily tech, spent a solid decade in executive roles out here in SF, so I'm used to high-growth, high-risk.
- •That’s what led me down the gold rabbit hole.
- •The idea for me was long-term stability and a hedge against what feels like increasingly unpredictable economic policy from the Fed.
Been following a lot of the discussion here about the Fed and what it means for gold, especially with all the noise around interest rates and inflation. As someone who's fairly new to this space – just moved about a quarter of my retirement portfolio, roughly $300k, into a Gold IRA over the last 18 months – it’s a constant thought.
My background is pretty heavily tech, spent a solid decade in executive roles out here in SF, so I'm used to high-growth, high-risk. But after seeing a few cycles and frankly, getting a bit tired of the constant volatility even in a "stable" market, I decided it was time to genuinely diversify. That’s what led me down the gold rabbit hole. The idea for me was long-term stability and a hedge against what feels like increasingly unpredictable economic policy from the Fed. When they keep rates low for so long, and then suddenly hike them, it just feels like the rug could be pulled out from under the dollar at any minute, or inflation could run wild.
I know the prevailing wisdom is that higher rates are bad for gold because it makes non-yielding assets less attractive. But I’m looking at the bigger picture here. Are the rate hikes actually cooling the economy down enough, or are they just slowing things without truly addressing inflationary pressures long-term? My gut says the latter. Plus, the sheer amount of debt and global instability makes me think that central banks might be forced to pivot again sooner than later, which would be incredibly bullish for gold. Curious what others who have been invested longer are thinking. Am I being too simplistic given my relatively short time in this asset class?