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

By  |  March 14, 2013

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.

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