Deutsche Bank Settles $60 Million for Gold Price Manipulation

Deutsche Bank reaches a $60 million settlement for manipulating the gold price, according to the report Reuters. The bank was found guilty of manipulating the daily gold price fixing, which unfairly disadvantaged traders. In October, Deutsche Bank also reached a settlement of $38 million for manipulating the price of silver.

This ruling confirms the suspicion of several experts in the gold market, namely that some banks manipulated the prices of precious metals. Incidentally, it is not only precious metals that the banks manipulate, because we have known for a few years that the banks have also been tampered with.Libor rate and currency.

Lawsuit

Several traders jointly filed a lawsuit in 2014 against Deutsche Bank, Barclays, Bank of Nova Scotia, HSBC and Société Générale, the banks that were then responsible for the daily fixing of the gold price. According to the prosecutors , in the period from 2003 to 2014, these banks benefited from a fixing that turned out to be very susceptible to manipulation and fraud.

In the past, the fixing of the gold price was determined through a telephone consultation between five banks. In periods of high uncertainty and volatility, this process could take a very long time, allowing banks to take profitable positions. Since March 2015 , the fixing has been determined via an electronic trading platform, a system that is more transparent and therefore less susceptible to fraud.

The daily fixing of gold and silver serves as a reference point for the market. Major players in the market base transactions on this reference price.

Deutsche Bank settles for gold price manipulation