A gold standard doesn't prevent manipulation of interest rates. The Federal Reserve manipulated interest rates while on a gold standard. One of the reasons they

A gold standard doesn't prevent manipulation of interest rates. The Federal Reserve manipulated interest rates while on a gold standard. One of the reasons they would increase or decrease interest rates was to manage the desired gold stock. The reason the US abandoned the gold standard was the (inevitable) failure of centralized fractional-reserve banking. By 1971 the U.S. was effectively insolvent in its ability to cover foreign holdings, and feared a run on the dollar. U.S. gold reserves couldn't keep pace with the expanding money supply and increasing demands by foreign holders for redemption of their dollars.