Global: Gold fix in limbo after benchmark rigging claims

The World Gold Council is exploring ways to overhaul the gold benchmark setting process as rigging claims plague the London Gold Fix.

According to reports, WGC managing director Natalie Dempster spoke Monday at a convention to discuss overhauls to the method of setting the gold fix,; reports say 34 delegates of various financial industries were in attendance.

”We are at the start of a process that will lead to a reformed and modernized gold benchmark which attracts a broader range of market participants,” Dempster said.

While analysts says there is a need for an overhaul, some analysts say the price of gold could rise as a result.

Barclays, which is one of three banks that now set the benchmark, was fined earlier this year by UK authorities after a former trader pleaded guilty to attempting to manipulate the benchmark.

The fix was further disrupted when Germany’s Deutsche Bank pulled out of the panel of banks that sets the price.

Full content: China Post

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