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.

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