You know, whenever you are trying to solve a crime you say, ‘Who has the motive?’. The person with the greatest motive to keep the price of gold low is actually China, because they have the most to buy. So, people point the finger at the Fed, but you might suspect China, but also hedge funds are involved.
Traditionally hedge funds were not very involved in gold, they are now. Hedge funds don’t care if they trade gold or base ball cards, for them it is all about making money. And, they engage in manipulation. And, the enforcement side in the United States is very weak right now, so it’s almost an invitation for hedge funds to come in and play games.
So there are a number of things going on, some of them technical.