Bloomberg News Admits The Fed Manipulates Gold

“Yellen Can’t Halt Trump Gold Rally That Funds Bet Against” – That was the headline in a Bloomberg news report that was released on Sunday afternoon. There’s a lot going on in that headline – none of it accurate except for the fact that gold is moving higher despite the efforts of western Central Banks to cap the price.

The basic premise of the report is that gold is moving higher in defiance of the Fed’s apparent move to raise interest rates. Reading through the report reveals even more misleading and completely false information than is conveyed by the headline. Here’s a link if you want to read the article:  Bloomberg/Yellen/Gold.

The headline itself and the article content are both highly problematic, riddled with disinformation and completely inaccurate assertions.  Anyone actually who might have read the article and trusted the content has been taken down to “ground zero” intellectually.  Propaganda for the ignorant.  I will be reviewing several ways in which the article content is inaccurate, if not intentionally fraudulent, in the upcoming issue of the Mining Stock Journal.

That said, the headline outright acknowledges that the Fed’s goal with respect to the price of gold is to prevent it from moving higher. The idea that Yellen “can’t halt” the rising price of gold implies that such intervention is part of the Fed’s mandate.  It’s the first time I can recall in 16 years of researching, trading and investing in the precious metals market that the mainstream financial media, unwittingly or not,  has acknowledged that the Federal Reserve attempts to intervene in the gold market.

If the implied message of the headline was inadvertent, it means that conversations with respect to the Fed and its role in preventing the price of gold from rising are actively occurring in meeting rooms and reporter “bullpens” at several financial media organizations, with orders from “above” to never publish the truth.   Imagine if the Washington Post had withheld the news about Watergate…

Today’s action in gold exemplifies the tenor of the Bloomberg report.  Almost as if “on cue,” in deference to Yellen’s attempt to “halt” the gold rally from yesterday, gold was slammed for $9 this morning.  The reason generally attributed is “March rate hike hopes” LINK.   I guess that’s all it takes.  Yellen or some Fed clown exhales “rate hike on the table in March” and gold gets slammed by the trading computers.

Allegedly Germany has repatriated a large portion of its gold ahead of schedule (why it was supposed to take 7 years no one can explain).  Notwithstanding whether or not the gold is actually sitting physically in a Bundesbank vault, the announcement of the early repatriation conveys a sense of urgency to do so.  Furthermore, the eastern hemisphere countries are hoovering gold like there’s no tomorrow for fiat currency.

The Feds and the western Central Banks are exuding fear with respect to gold. The escalation in anti-gold propaganda reflects this sense of desperation, as do the shallow sell-offs followed by a move higher in paper gold that are initiated by LBMA and Comex paper traders after the Asian markets close for the day.  The conclusion remains that all sell-offs in the gold market, like today’s, should be capitalized upon by adding to positions in physical gold and silver and in mining stocks.

9 thoughts on “Bloomberg News Admits The Fed Manipulates Gold

  1. Andrew Maguire thinks the paper price manipulators [PPMs] are losing control, as the strong demand and ever shrinking floating supply are creating a premium in physical markets over paper markets that is [finally!] drawing liquidity out of paper markets.

    This has, he says, left the PPMs with enormous short positions that they can’t cover at current prices, and without the means to bring price down to rescue themselves.

    They face the choice of doing another ‘1999 Eddie George Gordon Brown Special’ [sell hundreds of tonnes of physical into London to shock the price down] or declare ‘game over’ force majeure on the COMEX and settle longs in cash at pre-spike prices.

    I’m sure this is all being gamed out now in Basel, London and New York. The Bloomberg story may just be an indicator, for those who can see, of what’s coming down the road.

    1. I stopped listening to Maguire a while back now. I thought he had something to add but I think he indulges in pseudo technical babble. I thought this would have blown up looooooong ago but this zombie just keeps lumbering on defying predictions.

      “The art of war is deception” – we are kept in the dark, guessing, and are thus wrong footed.

      1. One day something will happen that will shift consciousness, and it probably will have nothing to do with the endless supply of digital paper precious metals. It may have something to do with the outing of pedophiles in high places, which has started with the low level slave traffickers already being rounded up. They’ll likely sing to save themselves some time in prison.

        What ever it is will cause investors to question paper and to re-evaluate its worth versus the important things in life.

      2. Maybe ‘stopped clock’ Maguire will be right just this once – just like a stopped clock is occasionally accurate.

        I actually hope not. I’m still accumulating. I hope the reset waits a couple of years. That would be perfect.

        Massive fight going on in the $1,230s these past few days between shorts and longs.

    2. PPM’s can keep it up as long as they want – makes it easier for normal folks to get it. Tip – get it straight from a refiner, in person. DGSE as a holding company, for example, sells bullion, rounds, and bars at their subsidiary jewelry and coin shops, without wholesaler markup. Best way to take possession without shipping, insurance, and with thinnest spread over spot. Refiners also have the best availability of the stuff.

  2. Dave, thanks for these Bloomberg admissions and solid inferences.
    Hidden beneath the tragic drama of western markets, lies the biggest gold market of all, China, where rapid changes can occur too fast for the naked eye, and shorts.
    Case in point. China is cracking down on OTC commodity markets where frauds such as price manipulation and embezzlement are known to take place.
    In fact, over the next few months “over 300 local OTC markets” will be brought into compliance or shut down by a June 30 deadline:
    Feb 20, 2017 05:03 AMFINANCE
    Shenzhen Police Raid Four Companies in Futures-Fraud Probe
    By Lin Jinbing and Dong Tongjian
    (Shenzhen) — Shenzhen police raided at least four companies suspected of engaging in illegal trading on local commodities exchanges across the country, as the central government intensified efforts to clean up hundreds of poorly regulated local over-the-counter (OTC) markets.
    Police took several employees into custody on Friday, and the companies are being investigated for fraud and for trading precious metals and crude oil futures, sources close to the local police and the financial markets regulation bureau told Caixin.
    The companies are all based in Shenzhen, the southern Chinese city that borders Hong Kong, but the companies are registered in places as far away as Lanzhou, capital of the northwestern province of Gansu. These entities trade, or used to trade, commodities on OTC markets in cities around the country.
    The raids were carried out against the backdrop of a renewed campaign by the central government to clean up hundreds of OTC markets backed by local governments that trade commodities as diverse as precious metals, stamps and wine.
    Futures trading of commodities is rife even though under current regulations, only spot trading is allowed. Transgressions include trading standard contracts without physical delivery of the underlying commodity, failing to have custodian accounts for client funds, and manipulating prices….

    In January, the commission said a resurgence of banned or illicit trading had forced the authorities to launch yet another nationwide clean-up campaign which will last for several months. A report prepared by the task force showed that more than 300 local OTC markets were still engaged in illegal activities.
    CSRC spokesman Deng Ge warned at a Feb. 10 briefing that time is running out for these rogue local markets. Those who fail to take corrective action or pass the task force’s inspections by June 30 will be shut down, he said.”

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