El Salvador president proposes bill to overturn metals mining ban
In 2017, El Salvador became the first country in the world to ban forms of metals mining.
A British investigation is looking into whether gold benchmarks are being rigged, Bloomberg reports.
An unidentified source familiar with the matter told Bloomberg that the UK Financial Conduct Authority (FCA) – a non-government regulatory body for financial institutions – has launched an informal probe into the matter as part of a wider investigation into how global rates are set.
The source did not say which specific benchmarks were being investigated.
Financial markets have come under serious scrutiny after the Libor probe last year revealed that the London interbank offered rate was being manipulated.
Last month the FCA confirmed that it was investing the potential rigging of foreign-exchange markets.
“We’ve seen a pattern of this sort of scrutiny across markets,” Bill O’Neill, a partner at Logic Advisors told Bloomberg. “I don’t think this will have a big price impact in gold, but it could change the way markets are traded.”
One of the most important benchmarks for gold is the London Gold Fix. A measure of the spot price for physical gold is set twice a day by representatives from five major bullion banks.
Last year a director at investment management firm Cheviot told CNBC that he believed gold has been manipulated for some time now.
“It would be interesting to see whether that comes under further scrutiny,” the director said at the time.
3 Comments
goldbob
Buy gold,vote UKIP.
Ben Swindled
Rothschild exploits
Peter
The market, as always will decide. It’s all about supply and demand and clearly demand for gold has fallen, as simple as that. What, in any case is wrong with speculation? That is how the global Forex, Equity and commodity markets are run. If I am happy to short gold then I can do so. If I am wrong I will lose, however if I am right I will win, as simple as that. Shame, do they want to investigate this to see why the price has fallen? Will the do the same when the soya or another commodity price falls? Oh sorry, soya actually has a use as food… Gold has none so really it is all about speculation here. Why did the gold price fall when QE was happening at full pace? Is it perhaps because investors realised that a commodity with no real industrial use or also known as demand really has no price?