London faces gold ‘fix’ probe

<p>Gold prices in London may have been fixed.</p>

A probe could be launched to investigate whether London's gold and silver markets have been "fixed" in a similar incident to the Libor-rigging scandal.

According to a report by the Wall Street Journal, the US Commodity Futures Trading Commission has held talks over whether the daily setting of gold and silver prices in London is open to be manipulated.

Commissioner Scott O'Malia said on Thursday (March 14th) that the situation is "fairly immature in its development", but it could still have an impact on the price of gold.

"We're looking at energy, indexes, prices, how they're set. We'll look at all of the range of index-setting," he added.

Bart Chilton, another commissioner at the organisation, stated it is a fair line of inquiry for the body to go down in the wake of the Libor scandal.

Chen Min, an analyst at Jinrui Futures in the southern Chinese city of Shenzhen, recently told Reuters that he believes the rise in gold prices in unsustainable.

Find out about commodities trading and learn CFD strategies at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.