Gold grinds to a halt

Gold has spent much of the week just treading water after some impressive moves over the past month.

Even with the precious metal having plateaued in the last week, it is still on course to finish the month with its best returns for over half a year. Many goldbugs will feel that this has been a long time coming, and the fact that the downtrend in place since May 2013 has been broken will give confidence that there is more to come.

Conspiracy theories over gold price manipulation have always been in ready supply, and the last analysis from the NYU Stern School of Business will no doubt add fuel to that fire. Its findings point towards collusive behaviour between participants of the London Gold Benchmark Fix companies. Considering some of the indiscretions that have been exposed from a number of major financial institutions, and the subsequent punitive fines that have been levied against them, it is no wonder that many are in agreement with these findings.

Although not directly affiliated to gold, the recent demise of one of the largest Bitcoin trading houses will potentially have seen a number of investors who diversified away from gold into Bitcoin reassessing the security of that move. If nothing else, these events will have given a fresh focus for those very same conspiracy theorists.   

Spot gold chart

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