Market-rigging central banks laugh at technical analysis and ‘fundamentals’
By: Chris Powell, Secretary/Treasurer, GATA
Friday, 28 June 2013
Dear Friend of GATA and Gold:
Technical analysis of a manipulated market like gold has been tedious nonsense for years, but these days, with virtually infinite paper dropped on the gold futures market at illiquid times to drive the price down even as the physical market remains strong, technical analysis has become insulting.
The only analysis worth anything anymore is the identification of the source of all the paper.
The suspects are obvious — Western central banks. Even a little-known fund manager who managed to get on CNBC yesterday perceived it:
But while central bank intervention now has driven the gold price down below the cost of production, the nominal spokesmen for gold investors and the gold mining industry have nothing to say, or nothing relevant.
Back on April 19, a week after the big gold smash, the World Gold Council could do no better than grumble about “speculative traders”: