As a firm believer in the US FED and other Central Banks manipulation of the gold price, I am often asked to show proof that the US engages in such activity. I need to look no further than Alan Greenspan's own words still etched in the Federal Reserve's website confirming such manipulation. He states.....
"The vast majority of privately negotiated OTC contracts are settled in cash rather than through delivery. Cash settlement typically is based on a rate or price in a highly liquid market with a very large or virtually unlimited deliverable supply, for example, LIBOR or the spot dollar-yen exchange rate. To be sure, there are a limited number of OTC derivative contracts that apply to nonfinancial underlying assets. There is a significant business in oil-based derivatives, for example. But unlike farm crops, especially near the end of a crop season, private counterparties in oil contracts have virtually no ability to restrict the worldwide supply of this commodity. (Even OPEC has been less than successful over the years.) Nor can private counterparties restrict supplies of gold, another commodity whose derivatives are often traded over-the-counter, where central banks stand ready to lease gold in increasing quantities should the price rise."
http://www.federalreserve.gov/boarddocs/testimony/1998/19980724.htm
The next question I get asked is why would the US FED and other Central Banks want to cap the rise in the price of gold. I'll let readers form their own opinions on the answer.
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