Gold price is manipulated by the Fed, suspects mining tycoon Frank Giustra, but suppression can’t last forever (Kitco News – May 5, 2022)

The gold price has been “manipulated” by central bank authorities, in particular, the Federal Reserve for decades in a broader scheme to maintain U.S. dollar supremacy in the global monetary system, said mining and movie mogul Frank Giustra.

Giustra, who is the CEO of Fiore Group and also the founder of Lionsgate Entertainment, had in the past said that the price of gold was “managed” by central banks and bullion banks. Now, he is doubling down and saying that the price is “outright manipulated.”

“It’s been no secret that since the U.S. 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 your home interest rates keeping them low, it’s important to anchor inflation expectations, it’s important for a whole bunch of reasons,” Giustra told Michelle Makori, Editor-in-Chief of Kitco News.

Due to the highly levered nature of the precious metals markets, gold is highly susceptible to spoofing, and other forms of trading manipulation, Giustra noted. In September 2020, JPMorgan was found guilty of spoofing the metals futures markets by the CFTC and was subsequently fined $920 million.

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