Regulators are stepping up their scrutiny of how gold prices are set, with officials from Britain’s Financial Conduct Authority visiting Societe Generale to observe the so-called London fixing process, two people with knowledge of the matter said.
Bloomberg reports that investigators visited the French bank’s U.K. offices in recent weeks for the morning and afternoon conference calls, during which the reference price used by miners, jewellers and central banks is set, the people said. The watchdog is visiting all five member banks involved in the London fixing as part of its review of gold benchmarks, according to one of the people, who asked not to be identified because the matter is private.
The century-old London fixing is led by representatives of Barclays, Deutsche Bank, Bank of Nova Scotia, HSBC and current chairman Societe Generale. They hold conference calls at 10:30 a.m. and 3 p.m. where they discuss buying and selling the metal, starting from the dollar spot price, until a rate is agreed upon.
To access the complete Bloomberg article hit the link below: