Gold market manipulation, often known as gold price manipulation, is a deliberate attempt to manipulate gold prices. In financial markets, this type of manipulation occurs when the traders attempt to influence the markets.
It might be to blame for certain short-term fluctuations in asset values, including the price of gold. Manipulating quotations, pricing, or trades to generate a false or misleading image of a security’s demand. A common notion among gold investors is that gold prices are controlled, typically downwardly, in a process known as price suppression. Many gold investors feel that the gold market is purposefully controlled.
Some argue that precious metals are controlled by central bankers while others blame major banks and their use of derivatives and high-frequency trading for gold price decreases.
Concerns have also been raised regarding the disparity between paper gold and actual gold. The fairness of London trade, falling Cemex stockpiles, and central banks leasing gold.
This idea makes sense, given that the price of gold has been set or repressed for decades by governments or the London Gold Pool. And that a few financial organizations have previously been penalized for influencing or manipulating gold prices.
The gold market is just too large and liquid for any individual, central bank, or company to manage. As a result, any efforts to systematically reduce gold prices would be futile. Because lowering the price of gold would cause a market reaction in the form of increased demand and upward pressure on the price.