Theories about what triggered gold's recent drop are “cover stories,” says Chris Powell, co-founder of the Gold Anti-Trust Action Committee (GATA), an organization focused on exposing, opposing and litigating against collusion to control the price and supply of gold and related financial instruments.
The reason the metal fell was because central banks stepped in and gutted gold prices to avert a short squeeze in London, he noted.
Gold saw its biggest two-day drop ever, reported CNBC, which compared the decline with the stock market crash of 1987.
Powell said that type of price action was “too overwhelming.”
“Nobody sells gold like that in order to make a profit on a long-term gold holding,” he told Yahoo.
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