by
GoldCore
Today’s AM fix was USD 1,333.00, EUR 968.54
and GBP 800.46 per ounce.
Friday’s AM fix was USD 1,320.75, EUR 963.63 and GBP 792.20 per ounce.
Friday’s AM fix was USD 1,320.75, EUR 963.63 and GBP 792.20 per ounce.
Gold fell $0.20 or 0.02% Friday to
$1,323.50/oz. Silver lost $0.02 or 0.09% at $21.81/oz.
Gold and silver were both up for the week at 0.37% and 1.68%.
Gold and silver were both up for the week at 0.37% and 1.68%.
Gold has risen 0.8% in London and reached
$1,334.60/oz, its highest level since October 31. After last years
28% decline, gold is now 11% higher this year.
Gold
in U.S. Dollars, 5 Year – (Bloomberg)
Gold may post its fourth week of gains as
concern of prolonged political unrest in Ukraine raises fears of a
sovereign default and contagion. This is adding to safe haven demand
for gold – particularly in Eastern Europe and Russia.
A breakthrough peace deal for Ukraine has
halted days of violence and may bring sweeping political
change, meeting many of the demands of the pro-European opposition.
However, there are considerable financial and economic challenges
facing Ukrainian banks, the Ukrainian pension system and the wider
economy. There remains the risk of a default that could lead to
contagion.
Bullion for immediate delivery traded at
$1,325.10 an ounce at 2:23 p.m. in Singapore from $1,324.28 on
February 21, when prices capped a third weekly gain.
The Financial Times reports this morning that
global gold prices may have been manipulated on 50% of occasions
between January 2010 and December 2013, according to analysis by
Fideres, a consultancy.
The findings come amid a probe by German and UK
regulators into alleged manipulation of the gold price. Prices are
set twice a day by Deutsche Bank, HSBC, Barclays, Bank of Nova
Scotia, and Societe Generale in a process known as the London gold
fixing.
Fideres’ research found the gold price
frequently climbs, or falls, once a twice-daily conference call
between the five banks begins, peaks or troughs, almost exactly as
the call ends, and then experiences a sharp reversal, a pattern it
alleged may be evidence of “collusive behavior.”
Fideres concluded that this “is indicative of
panel banks’ pushing the gold price upwards on the basis of a
strategy that was likely predetermined before the start of the call
in order to benefit their existing positions or pending orders.”
“The behavior of the gold price is very
suspicious in 50% of cases. This is not something you would expect to
see if you take into account normal market factors,” said Alberto
Thomas, a partner at Fideres.
Pension funds, hedge funds, commodity trading
advisers and futures traders are most likely to have suffered losses
as a result, according to Mr Thomas. He said that many of these
groups were “definitely ready” to file lawsuits.
Daniel Brockett, a partner at law firm Quinn
Emanuel, also said he had spoken to several investors concerned about
potential losses.
Matt Johnson, head of distribution at ETF
Securities, one of the largest providers of exchange-traded products,
said that if gold price collusion is proven, “investors in products
with an expiry price based around the fixing could have been badly
impacted.”
Gregory Asciolla, a partner at Labaton
Sucharow, a U.S. law firm, added: “There are certainly good reasons
for investors to be concerned. They are paying close attention to
this and if the investigations go somewhere, it would not surprise me
if there were lawsuits filed around the world.”
All five banks declined to comment on the
findings, which come amid growing regulatory scrutiny of gold and
precious metal benchmarks.
BaFin, the German regulator, has launched an
investigation into gold-price manipulation and demanded documents
from Deutsche Bank. The bank last month decided to end its role in
gold and silver pricing. The U.K.’s Financial Conduct Authority is
also examining how the price of gold and other precious metals is set
as part of a wider probe into benchmark manipulation following
finding of wrongdoing with respect to LIBOR and similar allegations
with respect the foreign exchange market.
The
Financial Times article, ‘Gold
price rigging fears put investors on alert’,can
not be accessed this morning, but the Gold Anti Trust Action
Committee (GATA) covered the Financial Times story in their
dispatches and it can be read here.
The
7 Key Allocated Gold Storage Must Haves
1.
Ability to take delivery: Ensure
that can you take delivery of your bullion when you want and where
you want2.
Bullion authenticity: Ensure
your gold bullion is produced and stored within the LBMA chain of
integrity3.
Gold bullion audits: Ensure
your bullion is audited daily, and annually by internationally
recognised auditors4.
On-Line storage inventory: Ensure
that you can log-on to view your bullion item description for bars or
coins, quantity, gross weight, fineness and item value5.
Being able to visit and view holdings: Ensure
that you can arrange to visit and view your physical gold coins and
bars6.
Insurance of bullion at storage facilities: Ensure
that your bullion provider and its storage partners have adequate
insurance cover7.
Guarantee of bailment: Ensure
that the legal ownership of the bullion remains with you
Owning gold directly and in a fully allocated
and fully segregated account remains vital.
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