Central Bank Intervention Keeps Gold Price Lower
According to the Gold Anti-Trust Action Committee (GATA), considering the comparison of the gold price with the Commodities Research Bureau (CRB) Index the gold price is much lower than it should actually be.
Gold’s failure to keep up with exploding commodity prices, as it did during the last commodities boom in 1980, is more powerful evidence of surreptitious intervention by central banks in the gold market, GATA said.
Drawing on the work of its consultant, Dan Norcini, a futures trader in Houston, GATA compared 1980 monthly closing levels of the Commodity Research Bureau Index with the monthly closing spot gold price at the time. The last five months of 1980 were the only times prior to this year when the CRB Index was above 300, GATA said.
Every other time in 1980 when the CRB Index was above 300, GATA said, the gold price was above $600 per ounce, more than $150 above where gold is priced today.
Source: Central bank intervention keeps gold prices lower: GATA