Gold Prices Under Pressure as Fed Raises Interest Rates

The Federal Reserve raised interest rates by 25 basis points last week, and Federal Reserve Chairman Kevin Warsh indicated that another rate hike is likely before year-end.

This move has put downward pressure on gold prices, with some analysts saying higher interest rates make the yellow metal less attractive as an investment alternative.

However, Rich Checkan argues that owning gold can still be a smart move to protect purchasing power, even in times of rising interest rates.

Checkan points out that Chairman Warsh faces significant challenges in fighting inflation with higher interest rates due to the country's massive national debt, which now stands at over $40 trillion.