US regulator eyes probe into London gold price manipulation

US regulators are scrutinising whether prices are being manipulated in the world's largest gold market, based in London.

According to a report in the Wall Street Journal, the Commodity Futures Trading Commission is examining the setting of prices in London, in which a handful of banks meet twice daily and set the spot price for a troy ounce of physical gold. In a probe reminiscent of the recent LIBOR scandal, the Commission is looking at issues including whether the setting of prices for gold - as well as the smaller silver market - is transparent. No formal investigation has been opened, however. UK banks - which have already been rocked by the LIBOR scandal - are key to setting the price of gold. T...