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Any U.S. Attempt to Restrain Gold Price Would Backfire, Says Jeffries’ Christopher Wood
By Ernest Hoffman
Kitco News, Montreal
Friday, April 12, 2024
The U.S. government may be tempted to restrain gold prices, but this would only serve to drive bullion higher, according to the latest Greed & Fear Report from Christopher Wood, Global Head of Equity Strategy at Jeffries.
Wood wrote that there is an “obvious temptation on the part of a major central bank to seek to try to manage the gold price,” and shared an anomalous move in Comex gold futures as an example of how this kind of management might appear.
At 3 p.m. New York time last Thursday there was a $1. billion sale of gold futures in about three minutes that temporarily knocked the bullion spot price,” he pointed out, and while he has no idea who was behind it, he noted that “a soaring gold price is not in the interest of the relevant authorities any more than a surging oil price is.”
Wood wrote that while the drivers of the oil price rally are fairly obvious, “the near-term drivers of the current gold rally are much less clear.” …
… For the remainder of the report: