Gold fell on Wednesday as the dollar strengthened. Is it manipulation to lower the yellow metal price? “The gold price can be manipulated in the short term by traders using a variety of trading techniques,” said Rick Rule. Analysts, on the other hand, draw attention to the Fed’s stance for the yellow metal.
Is there a big conspiracy to lower the price of gold?
Rick Rule, founder of RuleInvestmentMedia and former President and CEO of Sprott US Holdings, said, “The idea that there is a massive conspiracy between governments and central banks and the Trilateral Commission to lower the price of gold seems absurd to me. ” and explains:
So, look at the so-called players. Can’t the government deliver the mail, educate the children, and yet preside over a 40-year manipulation of the gold price? I do not think so.
But Rick Rule says that in the short run, the gold price is manipulated because that’s the rule. Rule details the issue as follows:
It can be said that the short-term gold markets are manipulated, I wholeheartedly agree with that. I believe that all markets can be manipulated in the short run. If they can manipulate a US Treasury market sized market with a LIBOR market, they can certainly manipulate the gold market.
“When people realize that inflation is a serious problem, they will turn to gold”
Returning to inflation and a possible US recession, Rick Rule, Chairman Jerome Powell’ He thinks that the Federal Reserve will stop raising interest rates, despite the hawkish rhetoric of Mr.
I haven’t made much money in the last 40 years believing that my government is telling me the truth. I think Powell should raise interest rates. But I don’t think he will. The political superstructure in the country will react to the problem that the voters see today, namely the interest they paid on the first housing loan and the interest they paid on the credit card.
Rick Rule notes that people will only turn to gold when they realize that inflation is a serious problem. In addition, Rule states that interest rates will continue to rise, but not to the extent that Fed forecasts are at their most hawkish, and continues:
I think they can increase the interest rate by 50 or 75 basis points. I think if they do that, the stock markets will continue to fall. I think the long-term debt market is broken. I think the broad economy is starting to suffer.
Stephen Innes: This helps the yellow metal
Gold prices fell on Wednesday as the dollar strengthened. Investors, on the other hand, are waiting for the minutes of the US Federal Reserve’s May policy meeting for clues about the magnitude of the central bank’s upcoming rate hikes. As you can follow from Cryptokoin.com news, the dollar index (DXY) strengthened after hitting a one-month low in the previous session. Stephen Innes, managing partner of SPI Asset Management, comments:
Traders will look to the FOMC (Federal Open Market Committee) minutes for policy clues after June and July, as expectations for September rate hikes can be crucial for gold prices.
However, Stephen Innes says investors are struggling over how to assess the downtrend for inflation now that we’re past peak inflation. Also, the analyst states that the problem for the market is “How long will it take to normalize” and this helps gold in an uncertain way.
Technical analyst Wang Tao points to these levels for gold
Although gold is seen as an inflation hedge, high short Futures US interest rates increase the opportunity cost of holding non-yielding bullion. As the Federal Reserve strengthens its fight against the highest inflation in 40 years with a series of big rate hikes, a US central banker issued a cautionary note, warning that longer-term rate hikes could create a “significant economic shock.”
According to Reuters technical analyst Wang Tao, spot gold could stabilize around a support at $1,856 and retest resistance at $1,867.
