(Bloomberg) – There’s “no clear evidence” of manipulation during the century-old London gold fixing, the U.K.’s Financial Conduct Authority’s David Bailey said.
The FCA in May fined Barclays Plc after a trader sought to influence the gold fix in 2012. The regulator has been visiting member banks involved in the gold fixing this year as part of its review of gold benchmarks, a person with knowledge of the matter said in April.
The means to manipulate gold during fixings exists, Alberto Thomas, a partner at advisory firm Fideres Partners LLP, said during today’s hearing. The fixing is difficult to audit, doesn’t have good governance, and there’s a “strong indication of manipulation,” he said, referring to price moves.
Gold was fixed at $1,326.50 an ounce this afternoon. The metal for immediate delivery has climbed 11 percent this year, rebounding from the biggest annual slump in three decades, according to Bloomberg generic pricing.
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