U.S. regulators investigating transparency of gold U.S. regulators investigating transparency of gold, silver price setting
The debate that never dies and is never resolved is back as the U.S. Commodity Futures Trade Commission apparently is investigating the setting of gold and silver prices in London.
Author: Dorothy Kosich Posted: Thursday, 14 Mar 2013
MINEWEB (RENO) - The U.S. Commodity Futures Trading Commission is investigating the setting of gold prices in London to determine whether prices are being manipulated, the Wall Street Journal reported Wednesday.
“The CFTC is looking at issues including whether the setting of prices for gold—and the smaller silver market—is transparent,” wrote WSJ reporters Katy Burne, Matt Day and Tatyana Shumsky. “No formal investigation has been opened...” The agency did not respond to the WSJ’s request for comment.
The London gold price is set twice daily via conference calls involving Barclays, Deutsche Bank, HSBC Holding, Bank of Nova Scotia and Societe Generale. Silver pricing is set once daily by the Bank of Nova Scotia, Deutsche Bank and HSBC.
A spokesman for the London Bullion Market Association told WSJ, the price settings are "fully transparent. It’s nothing like Libor."
The possibility of manipulation of the London price-setting process has been the subject of lengthy debate in gold and silver markets for years. For instance, the Gold Anti-Trust Action Committee (GATA) was formed in January 1999 to “exposure and oppose the manipulation and suppression of the price of gold.”
SEE: Sinclair incandescent – biggest manipulative play in gold ever and Sinclair rounds on gold manipulating bullies and devils
The CFTC has been investigating allegations of misconduct in the silver markets since 2008. In November 2011, the CFTC announced it was still pursuing an investigation into the possibility of unlawful acts in the silver market.