Is the Price of Gold Manipulated?
An increasing price of gold provides signals about the value of fiat money and can influence confidence in the financial and monetary system. Central banks therefore have an interest in gold price movements. This paper summarizes the main arguments for central bank gold price management, it replicates commonly used analyses to support the claims of price suppression and presents new statistical evidence. Conversely, we find no clear evidence of gold price suppression and provide explanations for apparent anomalies including liquidity, investor behaviour and the gold carry trade. Despite statistical evidence against central bank gold price manipulation, the opacity of the gold market and the role of gold as a thermometer for the value of fiat currency render it difficult to comprehensively dismiss claims of manipulation.