A PYMNTS Company

Global: Whispers of gold market facing its own LIBOR-like scandal

By  |  March 14, 2013
Global: Whispers of gold market facing its own LIBOR-like scandal

The Commodity Futures Trading Commission, based in the US, has announced that it will investigate the price setting of gold and silver in London, and whether that setting is affected by manipulation. According to reports, gold is priced with a process of five major banks meeting twice a day. Those prices then affect the rest of the global market. Reports say the pricing of gold and silver, which is “unusual” compared to other markets, is comparable to the LIBOR rate rigging. Reports have only announced that the CFTC is only considering launching an investigation in London. But if manipulation is found, the implications would be global. Calls to each of the five banks that fix gold prices – Barclays, Deutsche Bank, HSBC, Bank of Nova Scotia and Société Générale – did not yield official responses.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

     

    Full Content: The Guardian

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.