Dear Friend of GATA and Gold:
The U.S. dollar index, our friend Dave Kranzler of Investment Research Dynamics writes today, “is back to where it was right before Federal Reserve Chairman Jerome Powell’s press conference yesterday. When Powell said ‘maybe in November we’ll have a taper schedule,’ the dollar shot up and paper gold was slammed. With the dollar back down to its pre-presser level today, gold is still down $36.”
Indeed, yesterday the Fed essentially said that it isn’t “tapering” its bond purchases yet, though it might (or might not) do so soon, nor is it raising interest rates, though it might (or might not) do so some time next year.
That is, the Fed offered only a lot of temporizing for the umpteeth time.
But what if the Fed did begin “tapering”? Presumably that would diminish demand for bonds, weakening their prices and making other assets, even gold, more attractive.
As for interest rates, real rates are already deeply negative as inflation increases and traditionally gold has risen in price even as interest rates rise when they lag inflation so much.
So gold’s latest counterintuitive performance might raise questions about what is going on, and particularly about official but surreptitious intervention in the market.
People in the gold industry might ask certain agencies about the frequent anomalies involving the gold price — agencies like the Fed, U.S. Treasury, U.S. Commodity Futures Trading Commission, the Bank of England, and the Bank for International Settlements, as GATA often has done:
But the gold mining industry and the World Gold Council always refuse to ask about intervention, and it must be assumed that, at least for the time being, adversaries of the United States that long have taken a strong interest in gold — particularly China and Russia — are going along with price suppression, in spite of or maybe even because of the gradual implementation of the “Basel 3” banking regulations that seem likely to reduce the gold derivatives positions of bullion banks.
Gold and gold mining investors who would prefer not to wait for central banks to decide the fate of gold can always ask the companies in which they have invested, their elected officials, their investment houses, and news organizations to pursue the market manipulation issue. GATA has made it easy, compiling the major documentation here:
Of course most of the important participants in the markets and news media have been bought off. But even then you can embarrass them with the documents.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
* * *
Join GATA here:
New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
2 Poydras St., New Orleans, Louisiana
Tuesday-Friday, October 19-22, 2021
* * *
Toast to a free gold market
with great GATA-label wine
Wine carrying the label of the Gold Anti-Trust Action Committee, cases of which were awarded to three lucky donors in GATA’s recent fundraising campaign, are now available for purchase by the case from Fay J Winery LLC in Texarkana, Texas. Each case has 12 bottles and the cost is $240, which includes shipping via Federal Express.
Here’s what the bottles look like:
Buyers can compose their case by choosing as many as four varietals from the list here:
GATA will receive a commission on each case of GATA-label wine sold. So if you like wine and buy it anyway, why not buy it in a way that supports our work to achieve free and transparent markets in the monetary metals?
To order a case of GATA-label wine, please e-mail Fay J Winery at: firstname.lastname@example.org
* * *
Support GATA by purchasing
Stuart Englert’s “Rigged”
“Rigged” is a concise explanation of government’s currency market rigging policy and extensively credits GATA’s work exposing it. Ten percent of sales proceeds are contributed to GATA. Buy a copy for $14.99 through Amazon —
— or for an additional $3 and a penny buy an autographed copy from Englert himself by contacting him at email@example.com.
* * *
Help keep GATA going:
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit: