For years, key Western central banks (read the Federal Reserve and the Bank of England) have been manipulating the gold prices to preserve the U.S. dollar’s role as the world’s “reserve currency primus.” But China and Russia now seem to be tired of the clandestine gold price manipulation by Western banks, American-German economic researcher F. William Engdahl told Sputnik News.

China, Russia To Create Their Own Gold Market To Bring Down The Dollar

China’s master plan to break the world’s dependence on the US dollar

Today, the Over-the-Counter (OTC) trades cleared through the London Bullion Market Association and the COMEX gold futures market in the U.S. set prices that are followed around the world. But these markets are dominated by scandal-ridden and corrupt organizations like UBS, JPMorgan Chase, Barclays, Deutsche Bank, and HSBC.

F. William Engdahl said operations in both New York and London are in “questionable hands.” So, China, Russia and other emerging powers are moving towards creating their own gold market not controlled by the corrupt and manipulative Western banks. This approach is in line with the Asian Infrastructure Investment Bank (AIIB) and China-led New Silk Road initiative.

In May, Beijing established a state-run gold fund to boost the country’s role in global gold trade. The new gold fund will invest in projects in countries along the New Silk Road, encouraging their central banks to boost their gold holdings. China has made it clear that it would enable Eurasian nations along the Silk Road to boost the gold backing of their currencies. Having a stable group of gold-backed currencies would allow smooth trade without the U.S.-led currency wars.

Russia supporting China’s ambitions

Russia is actively supporting China’s move. Right before Beijing created its new gold fund, China and Russia signed a deal to explore the gold reserve in the Magadan region of Russia, says Engdahl. Moscow has been hoarding gold for the past several years. As of June 2015, Russia had 1250.9 tons of gold reserves.

Engdahl notes that Russia’s new Eurasian Economic Union and China’s Silk Road are much more than just railroad and energy infrastructure. In the coming decades, these will become the central nervous system of the fastest growing economic region on the planet.