Craig Hemke at Sprott Money: Gold price driver isn't dollar/yen pairing anymore
Dear Friend of GATA and Gold:
The driver of the gold price, the TF Metals Report's Craig Hemke writes at Sprott Money today, no longer seems to be its correlation with the Japanese yen but rather with the U.S. dollar or euro. In any case, Hemke asserts, the gold price long ago lost any correlation with physical supply and demand and now is determined largely by algorithm-based high-frequency trading.
Who is doing that HFT trading? Hemke doesn't say. But if gold market analysts who deny that the market is comprehensively manipulated by central banks ever worked up the curiosity and initiative to visit the Federal Reserve Bank of New York or the Bank for International Settlements in Basle, Switzerland, during market hours and ask to tour the trading room, they might receive a powerful hint when the slammed door struck them in the face.
Hemke's analysis is headlined "The Gold Price Driver" and it's posted at Sprott Money here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.