Early Friday morning, Russian forces attacked and took control of Europe’s largest nuclear power plant in Ukraine.

The seizure caused global stocks to fall sharply but sent commodities soaring.

Reuters reported that gold was eyeing its best weekly gain since May of 2021.

Outlets report that commodities surged over the fear of severe disruptions to Russian exports of raw materials. Keep in mind that Russia is a large exporter of many things including oil, grains, and industrial and precious metals.

This week, Fed Chairman Jerome Powell said the Fed is likely to continue with interest rate hikes despite the possible economic impacts the Russia-Ukraine War could have on our nation’s economy.

However, he did say officials are keeping a close eye on what’s going on.

He said, “Everything is so uncertain. We don’t want to add to the uncertainty. At times like these, we move carefully.”

Russia’s invasion of Ukraine already pushed commodities to hit multi-year highs, with the price of oil surging past $100 a barrel.

Powell said this could impact inflation expectations and growth.

“What we know so far is that commodity prices have moved up significantly, energy prices in particular. That is going to work its way through the U.S. economy. We’re going to see upward pressure on inflation, at least for a while. We don’t know how long that will be sustained for. In addition, we could see risk sentiment declining. We could see lower investment, people holding back on spending. It is hard to see what the effect on both supply and demand will be. I would just echo that we need to be alert and nimble as we make decisions in what is quite a difficult environment.”

This week, Billionaire investor Ray Dalio warned other investors that, historically, now is a beneficial time to buy gold.

“When hot wars happen, classically it pays to sell out of debt and buy gold because wars are financed by borrowing and printing money, which devalues debt and money, and because there is a justifiable reluctance to accept credit,” he wrote in a LinkedIn commentary.

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