The central bank gold, silver and U.S. CPI gold prices that were “adjusted” up after the Wall Street investment conference last week showed that central banks are far more concerned about manipulating the markets than about fixing their pricing mechanism for physical gold and silver. In fact, gold in the form of silver has been undervalued due to the high Fed inflationary monetary policy since 2020. Indeed, the price of gold has now reached a point where the New York Fed’s gold manipulation was no longer a surprise, because it is an open secret that their gold manipulation is now the dominant explanation for all commodity prices other than gold.
The major markets are biased higher with Powell testimony and with the artificially low demand for precious metals. Perhaps the only markets that are in balance are those that are based on trading physical metal metals, such as gold, silver and platinum. Only gold is available in almost any amount, whether you want to buy gold at a single ounce or ounces, pounds or kilograms, hundredweight or tons.
On the one hand, the central bank manipulation of the price of gold is supported by the Powell testimony of its Board Chairman Ben Bernanke. This, therefore, has no impact on prices for physical metals. But, other markets, such as futures contracts on the London Metal Exchange, the Commodity Futures Trading Commission, and the New York Mercantile Exchange have become far more important in terms of controlling the physical metal markets, including gold, than the prices of commodities and currencies.
This, of course, is the main reason why the prices of physical metals continue to be skewed higher with Powell testimony and with the manipulated prices for the commodity market. The Chicago Board of Trade, the Commodity Trading Advisory Committee, the NYMEX price and the London LBMA price are still considered to be the more accurate, and therefore the more appropriate, benchmarks for the price of gold.
Tgold prices biased higher with Powell testimony, US CPI And, now that it has been admitted that some members of the Powell testimony were bought off by the government during their appearances before the Senate Banking Committee, it is no longer clear what the Powell testimony is all about. It seems more likely that the price of gold will not rise until prices for everything else are revealed to be even more distorted. The only thing the price of gold can do is to fall to the levels of demand in the past five years.
Even now, however, the prices of all other commodities are continuing to climb higher due to Powell testimony and the manipulated prices for the commodity market. And the markets are also being manipulated by the manipulation of the price of gold.
The result of all of this is that, regardless of how Powell testimony is used, the price of gold will not rise, because of the continuing rise in the prices of other commodities. This is not surprising at all, because markets are usually more influenced by manipulation than by true supply and demand.
No matter how the Powell testimony of the Fed or other central banks is used, the price of gold will continue to be biased higher. Of course, there will always be those markets that are in balance, like the price of gold.
The big question is whether the markets are in balance. And, if the markets are balanced, they will continue to grow due to the fact that the value of the dollar continues to increase despite the financial bubble, debt creation and government stimulus.
Paul Cooke is an international gold and commodities market analyst. A true independent, he has written six books on this subject.
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