Gata Dispatches:"Austrian Bank's Gold Report Cites Market Manipulation

Submitted by cpowell on 12:34PM ET Thursday, July 2, 2009. Section: Daily Dispatches 3:30p ET Thursday, July 2, 2009Dear Friend of GATA and Gold:Erste Group Research, a division of Erste Group Bank AG in Vienna, Austria, has just published a 53-page special report on gold that includes a section on manipulation of the gold market. This section seems to have been heavily influenced by GATA's work.Under the headline "Is the Gold Price Subject to Manipulation?," found on Page 39 of the report (and Page 40 of the Adobe Acrobat reader), the Erste Group report says:"The intraday movements have been showing an unusual pattern for many years now. In the early hours of Asian trading, the gold price tends to go up. Conversely, the afternoon fixing in London tends to trigger a downhill ride, which finds itself offset only partially in the New York session. "The extreme concentration of futures positions seems particular as well: Currently three U.S. banks are positioned net short to the tune of 12.3 million ounces. This is equal to more than 15 percent of global production."In a speech in July 1998 Alan Greenspan addressed this context, saying that 'central banks stand ready to lease gold in increasing quantities should the price rise.'"The article 'Gibsons's Paradox and the Gold Standard' by Lawrence Summers, currently chairman of the economic advisory board of President Obama, is another example. In this article Summers explains the connection between low key lending rates and the gold price."Paul Volcker, former chairman of the Federal Reserve (1979 to 1983) and currently a member of the economic advisory staff of President Barack Obama, pointed out, 'Joint intervention in gold sales to prevent a steep rise in the price of gold, however, was not undertaken. That was a mistake.'"And James Mofett, CEO of Freeport McMoRan, said, 'The central banks are the OPEC of gold. They will control the price of gold by selling until they change their minds.'"You can find the report at the Erste Group Internet site here: http://produkte.erstegroup.com/CorporateClients/en/ResearchCenter/Overvi... Or try this abbreviated link:http://tinyurl.com/lle54dArriving at that page, to open the report you'll have to click on the tiny Adobe Acrobat PDF emblem a dozen lines below the headline "Research Detail."CHRIS POWELL, Secretary/TreasurerGold Anti-Trust Action Committee Inc. * * *Join GATA here:Toronto Resource Investment ConferenceSaturday-Sunday, September 26-27, 2009Intercontinental Hotel, Toronto, Ontario, Canadahttp://www.cambridgeconferences.com/ch_tor2009.htmlNew Orleans Investment ConferenceThursday-Sunday, October 8-11, 2009Hilton New Orleans Riverside Hotel, New Orleans, Louisianahttp://www.neworleansconference.com/* * *Support GATA by purchasing a colorful GATA T-shirt:http://gata.org/tshirts * * *Help keep GATA goingGATA is a civil rights and educational organization based in the UnitedStates and tax-exempt under the U.S. Internal Revenue Code. Its e-maildispatches are free, and you can subscribe at:http://www.gata.org/ To contribute to GATA, please visit: http://www.gata.org/node/16 Contact GATAmailto:GATAinfo@gata.org Gold Anti-Trust Action Committee 7 Villa Louisa RoadManchester, Connecticut06043-7541 USA http://www.gata.org/