in category Economics

Is the price of gold being manipulated?

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The gold price is widely known to have been manipulated by central bank authorities, in particular, the Federal Reserve, for decades as part of a broader scheme to maintain US dollar supremacy in the global monetary system. This has been pointed out by critics over the years.

Since the US abandoned gold in 1971, they’ve tried to suppress it to allow the U.S. dollar to maintain its supremacy. That supremacy is important in terms of keeping home interest rates low, anchor inflation expectations etc.

Due to the highly levered nature of the precious metals markets, gold is highly susceptible to spoofing, and other forms of trading manipulation. In September 2020, JPMorgan was found guilty of spoofing the metals futures markets by the CFTC and was subsequently fined $920 million. In 2014, Barclays was fined nearly $44 million for failing to prevent traders from manipulating the London gold “fix.”

The Fed is one of the key actors in orchestrating a larger price manipulation movement working with the bullion banks via the Bank of International Settlements, giving them instructions to sell futures, executed through the bullion banks. The BIS, in case you’re unfamiliar, is often called the “central bank of central banks.” That’s because it provides banking services to as many as 60 financial institutions from all over the world, including heavyweights such as the Federal Reserve, Bank of England (BoE), European Central Bank (ECB) and Bank of Japan (BoJ). Its influence on global monetary and financial policy, in other words, is monolithic.

This is all well known. For 20 years now, the Gold Anti-Trust Action Committee have made it their mission to expose collusion by international financial institutions to control the price and supply of gold. It says gold is manipulated:

"It’s done largely in the futures markets. It’s also done in the London over-the-counter (OTC) market. The mechanisms are gold swaps and leases between central banks and bullion banks, and through the sale of futures contracts."

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