Those familiar with stories of gold price suppression and manipulation will not be surprised in todays report from GoldCore. There is a hint from the data available from the LBMA that price looks to be fixed. Why would this possibly happen? 😉 This post is an interesting introduction into gold supression by central banks. For futher information on this subject I would recommend looking at GATA who are an action group dedeicated to exposing the manipulation in this market. Another good site, but a little unusual is hosted by USAGold but written by Another (Thoughts).

The London AM and PM Gold Fix (USD) of the last two days in a row have been identical – to the cent – which is highly unusual.  View data from LBMA Website.

On Monday and Tuesday, the 28th and the 29th of November, the gold fix was identical in dollar terms and nearly identical in pound and euro terms.

On Monday, the 28th, gold’s AM and PM fix was at $1,714.00/oz.

On Tuesday, the 29th, gold’s AM and PM fix was at $1,717.00/oz – exactly just $3.00 higher than the day before.

It may be a coincidence but if it is one, it is highly unusual as it happens rarely.

While it has happened twice in 2011 – on January 10th and February 2nd – it has never happened two days in a row. It happened six times in 2010 but again never for two days in a row.

Should it happen a third day in a row today – then questions will be asked as to whether the official sector and or bullion banks are attempting to fix prices at this level.

This was attempted by the London Gold Pool in the 1960’s when the Federal Reserve and seven European central banks capped and artificially suppressed the price of gold for a few years before the controls collapsed in 1968 due to free market realities.

Gold rose 24 times in the next decade from $35/oz in 1971 to $850/oz in 1980.

Obviously, there is a motivation for attempting to cap gold prices due to a real risk of an international monetary crisis due to the growing European and global debt crisis – not to mention an increasingly likely European currency crisis.

It is too soon to jump to conclusions and judgment must be suspended for now.

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