Is the gold price being manipulated?

26 May, 2020

The lack of volatility or growth in the gold price recently has left many in the market scratching their heads as to why the precious metal hasn’t rallied considering the current coronavirus epidemic which has caused significant damage to the world economy which should have seen gold sought out as a safehaven.

The unusual behavior with gold has led some to believe that there may have been some manipulation in the markets to purposely subdue the price to accommodate the agenda of a few market participants.

“We are witnessing financial market manipulations on a scale and frequency that have rarely been seen before. The lack of integrity by a few powerful market players is causing a major financial market melt-down from which the current form of our global economy may never recover,” said University of Sussex Business School professor of Finance Carol Alexander.

The coronavirus sent equity markets including Bluechip stocks into freefall in March which saw the stock market go from a bear market to a bull market in a matter of weeks and although there has been somewhat of a recovery, the stock markets are still well short of their highs they were sitting at before the pandemic struck.

 If we looked at past financial meltdowns, the gold price should have rallied strongly on the back of all this pandemonium as it did in previous financial crisis’s like the one that hit the markets in 2008 but this time around it was not the case..

“As funds flow out of equities one would expect demand for gold and bitcoin to increase. But this time around, safe havens have behaved completely differently. Gold and bitcoin have fallen at the same time as US equities,” Alexander wrote. “As the S&P 500 crashed in March 2020, gold had its worst week in eight years when it should have been its best. %,” the University of Sussex said. “Following the Lehman Brothers collapse in September 2008, the correlations between the S&P 500 index and gold, or the Swiss Franc, or US Treasuries were all around minus 40%. During March and April 2020 the correlation between the S&P 500 index and gold was plus 20%,” they added.


Source  
The market does not respond to statistics26 Mar, 2021  

The financial markets have changed a lot in the last few months. This may be too loud of a statement, but we are indeed witnessing a global change in a number of economic...

Oil, gold and interest rates12 Mar, 2021  

Earlier, we have repeatedly noted the high contribution of OPEC+ to the recovery of the oil market, which led to a fairly strong increase in oil prices. At the same time...

EUR renews growth26 Feb, 2021  

In the first three trading days of this week, we observed a weakening of the US dollar against most currencies. In particular, the British pound sterling against...


Decreased interest in risk24 Feb, 2021  

I will start today's review with the fact that the current week began with moderate sales on the stock markets of the United States and Europe. I would also like to draw...

Why did euro fall on the Fed publication?29 Jan, 2021  

Biden's new stimulus plan faces resistance from a bipartisan group. Republicans believe the overall cost of Biden's stimulus package could be reduced during...

USD correctional growth12 Jan, 2021  

The current week started with another wave of growth of the US dollar, which is largely due to the weakening of European and commodity currencies. As a result...


USD may continue to decline in 202119 Nov, 2020  

Let me remind you that earlier I already noted the statements of analysts from Morgan Stanley, who recommended getting rid of USD and paying attention...

Fed expects stock market crash12 Nov, 2020  

It's no secret that the world economy is in a stalemate. For several months, most of the world's countries have been on the verge of a financial crisis, which can only...

The collapse in oil prices27 Oct, 2020  

There is less and less optimism and this is very clearly seen in the change in risk appetite. France records more than 52,000 officially confirmed COVID-19 cases every day...