Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

US regulators analyse potential gold price manipulation in London

3 comments
US regulators analyse potential gold price manipulation in London

US regulators are trying to determine whether London-based traders manipulated the gold price.

According to the Wall Street Journal, the Commodity Futures Trading Commission (CFTC) is concerned about the level of transparency in the gold and silver markets.

Under the current set-up, five investment banks - Barclays, Deutsche Bank, HSBC, Bank of Novia Scotia and Société Générale meet twice a day in the UK capital to set the price for gold, while the latter three meet on silver.  

Gold has been seen as a safe haven in the turbulent market conditions, with its price breaking records and coming within touching distance of the $1,800 mark last October.  

While the CFTC has not launched a formal probe, the news bears striking hallmarks to the Libor investigation, which resulted in heavy fines for BarclaysRBS and UBS for rigging interest rates.

The CFTC is headed by former Goldman Sachs executive Gary Gensler, who according to the Wall Street, has 'called for reforms to Libor and other benchmarks that would require them to based on actual transactions, rather than estimates submitted by industry firms'.  

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Investment Pulse: the highs and lows of 2014

Investment Pulse: the highs and lows of 2014

This week's Investment Pulse looks back at some of the biggest stories of the year as well as looking forward to 2015.

Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter