Banks manipulated the gold price?
Peter Walden, News Editor
27 Aug 2015, 12:30 p.m.
Following a U.S. probe European financial regulators are to investigate possible precious metals manipulation by some of the world’s largest banks.
Prosecutors in the U.S. are currently investigating 10 banks including Deutsche Bank, Barclays and JPMorgan Chase. The latest scrutiny follows a number of international investigations into potential rigging of currency and interest rate benchmarks which has cost banks hundreds of billions of dollars in fines.
In May, Swiss Bank UBS gained immunity from criminal prosecution in a Justice Department investigation into precious metals misconduct after they cooperated with authorities. Barclays Bank also confirmed they are providing information to the relevant authorities.
In 2014 Barclay’s Bank was fined by the FCA after one of their traders was found guilty and fined £26 million for manipulating the London Gold Fix.
Many in gold community believe Central Banks and large financial institutions have been manipulating the price of gold lower in an attempt to maintain confidence in the U.S. dollar.