Brian Bloom Defends Claim Of No Manipulation Of The Gold Market

In a Market Oracle article, Brian Bloom explains why he thinks the Fed is not manipulating the gold price:

The reason that I think the gold price is not being managed at this point is that I think the central banks have run out of wriggle room....

As the saying goes: The spirit is willing but the flesh is weak. I believe we may be close to capitulation by the Fed in this mega game of chicken....

His argument amounts to noting an inability of the Fed to control the bond market, no matter how much it would like to. There's too much money in bonds for direct manipulation to succeed, and for there to be any interest-rate benefit to suppressing the gold price.


Central to his argument is the hidden claim that bond buyers don't consider gold significant when making decisions on inflation expectations. If not, then there's no point in any manipulation of the gold price.