Is gold being 'stabilized' by governments? Why price hasn't rallied on inflation - Frank Holmes
(Kitco News) - Governments and central banks might have an interest in "stabilizing" gold prices in order to maintain public confidence, which may be an explanation as to why the gold price did not move up on the release of last month's headline record inflation data said Frank Holmes, CEO of U.S Global Investors.
Headline inflation came in at 4.2%, the highest since 2008.
"The threat of gold exploding would basically say they've lost control, and I really think there's some kind of stabilization, if you want to call it," Holmes told David Lin, anchor for Kitco News.
On the mechanics of price control, Holmes said that central banks and governments use the futures markets for direct market operations.
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