DoJ, CFTC Investigating Big Banks for Precious Metal Price Rigging

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Gold Prices Going Up

The Department of Justice (DoJ) and the Commodity Futures Trading Commission are investigating at least 10 major banks for possible precious-metals price rigging, the Wall Street Journal reported, citing people close to the inquiries.

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DoJ prosecutors are scrutinizing the price-setting process for gold, silver, platinum and palladium in London, while the CFTC has opened a civil investigation, the newspaper said.

The banks are HSBC Holdings Plc, Bank of Nova Scotia, Barclays Plc, Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc, JPMorgan Chase & Co, Societe Generale, Standard Bank Group Ltd and UBS Group AG, the Journal said.

The precious-metals probes are the latest example of regulatory scrutiny into how the world’s biggest financial institutions influence widely used benchmarks.

With a decline of 4.5% to JPY 600.00 ($5.04) per 10 grams on Monday, February 23, Japanese silver recorded the biggest price drift of the day. The price of Indian silver declined 1.1% to INR 36,153 ($581.85) per kilogram. After a 0.3% increase, US silver finished the day at $16.45 per ounce. The price of Chinese silver remained steady at CNY 3,640 ($582.09) per kilogram.

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Indian gold bullion prices saw a 0.8% decline to INR 26,429 ($425.35) per 10 grams. Japanese gold bullion ended the day at JPY 4,597 ($38.60) per gram, after the 0.4% drop yesterday. The price of US gold bullion fell 0.3% to $1,205 per ounce. The price of Chinese gold bullion continues hovering around CNY 247.91 ($39.64) per gram for the fifth day in a row.

After improving for two days, the price of US platinum bar declined 0.5% to $1,164 per ounce. At JPY 4,442 ($37.30) per gram, Japanese platinum bar fell 0.4% on Monday. The price of Chinese platinum bar saw essentially no change for the fifth day in a row, remaining around CNY 259.00 ($41.42) per gram.

US palladium bar prices rose 0.4% to $781.00 per ounce. Japanese palladium bar stayed flat at around JPY 3,056 ($25.66) per gram. For the fifth day in a row, the price of Chinese palladium bar remained essentially flat at CNY 174.00 ($27.83) per gram.

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