Gold industry confirms gold fix must be fixed
Adam Pike, News Editor
8 Jul 2014, 10:34 a.m.
The World Gold Council (WGC) has confirmed that the process behind the 100 year old Gold Fix needs reform. Members of the WGC are currently meeting in London to discuss an alternative to the benchmark. The gold fix is a benchmark used by industry participants such as central banks and jewellers to price deals.
Natalie Dempster, managing director of the WGC confirmed discussions have started and the reforms will lead to a more modernised gold benchmark.
Central Banks, bullion banks, mining companies, traders and refiners are all taking part in the discussions which are being observed by the Financial Conduct Authority.
The gold fix has come under increasing scrutiny after Deutsche Bank’s decision to sell its seat on both the London Gold and Silver fix following an investigation by the German regulator into possible gold price manipulation. The gold fix also came under fire in May when Barclays Bank was fined $26 million for gold manipulation.