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Feb 23, 2014

London gold fix may be manipulating half the time, research concludes: GATA | THE GATA DISPATCH February 23, 2014.

London gold fix may be manipulating half the time, research concludes

Submitted by cpowell on 04:39PM ET Sunday, February 23, 2014. Section: Daily Dispatches
Fears Over Gold Price Rigging Put Investors on Alert; German and UK Regulators Investigate
By Madison Marriage
Financial Times, London
Monday, February 24, 2014
Global gold prices may have been manipulated on 50 percent 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, which is 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."
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," Fideres concluded.
"The behavior of the gold price is very suspicious in 50 percent 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.
Alasdair Macleod, head of research at GoldMoney, a dealer in physical gold, added: "When the banks fix the price, the advantage they have is that they know what orders they have in the pocket. There is a possibility that they are gaming the system."
Pension funds, hedge funds, commodity trading advisers, and futures traders are most likely to have suffered losses as a result, according to Mr. Thomas, who 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.
"It is fair to say that economic work suggests there are certain days when [the five banks] are not only tipping their clients off but also colluding with one another," he said.
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 to 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.

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NYT | Asian Morning Today's Headlines February 23, 2013. Ukraine Parliament Moves Swiftly to Dismantle President's Government.

The New York Times
NYT Apps|

Monday, February 24, 2014


Top News
Ukraine Parliament Moves Swiftly to Dismantle President's Government

By DAVID M. HERSZENHORN

Lawmakers fired top cabinet members in President Viktor F. Yanukovych's government and restored state ownership of the presidential palace.
. Lviv, in Western Ukraine, Mourns One of Its Own Killed in Kiev
Deputies entered the Parliament building in Kiev. President Viktor F. Yanukovych fled the capital, taking with him any trace of a peace deal that had sought to freeze Ukraine's tumult.

NEWS ANALYSIS

With President's Departure, Ukraine Looks Toward a Murky Future

By ANDREW HIGGINS

Gone along with President Viktor F. Yanukovych was any trace of a Friday peace deal that had sought to freeze the country's tumult.
Behind Gates, Bizarre Vision of Opulence

By ANDREW E. KRAMER

After the departure of President Viktor F. Yanukovych, his sprawling compound was opened, revealing a golf course, a private zoo, classic cars and a restaurant in the form of a pirate ship, among other things.
For more top news, go to INYT.com
Editors' Picks

OPINION | EDITORIAL

A Picasso in Trouble

By THE EDITORIAL BOARD

A developer wants to get rid of a bullfighting scene that was once part of a stage curtain for the Ballets Russes.

WORLD

Video VIDEO: Declaring Victory in Kiev
After months of protests and a week of bloody mayhem, demonstrators in Independence Square celebrated the departure of President Viktor F. Yanukovych.
World
Demonstrators rode a military vehicle to Independence Square in central Kiev. Protesters claimed control of the city's security.
How It All Began: A Cold War Battle Heats Up

By DAVID M. HERSZENHORN

Three core factors led to the chaos in Ukraine: a broken promise between a leader and his people, a lingering Cold War-era fight, and public outrage at the government's response to protests.
. David M. Herszenhorn Answers Questions on Ukraine
Lviv, in Western Ukraine, Mourns One of Its Own Killed in Kiev

By ALISON SMALE

A university lecturer who was shot to death had made several trips east to the capital to take part in antigovernment protests, a friend said.
Joaquín Guzmán Loera, known as El Chapo, was escorted to a helicopter in handcuffs in Mexico City on Saturday.
El Chapo, Most-Wanted Drug Lord, Is Captured in Mexico

By RANDAL C. ARCHIBOLD and GINGER THOMPSON

Mexican marines and the police, aided by information from the United States Drug Enforcement Administration and the United States Marshals Service, took him into custody without firing a shot.
For more world news, go to NYTimes.com/World
Business
Comcast and Netflix Reach a Streaming Agreement

By NOAM COHEN

Comcast has reached an "interconnection agreement" with Netflix to ensure that its videos would be streamed directly - and thus faster and more reliably - to Comcast's customers.
An Odd Couple in the News Business Partner in a Series on Fatherhood

By RAVI SOMAIYA

The Deseret News, a newspaper owned by the Mormon Church in Salt Lake City, has teamed up with The Atlantic magazine for a four-part series on fatherhood and family life.
Dr. Michael Siegel, a public health researcher, says that e-cigarettes could help end smoking.

THE NEW SMOKE

A Hot Debate Over E-Cigarettes as a Path to Tobacco, or From It

By SABRINA TAVERNISE

Some public health experts see e-cigarettes as a gateway to tobacco use, while others think they could help eradicate conventional cigarettes.
For more business news, go to INYT.com/Business
Technology
The Samsung Gear 2, left, and Gear 2 Neo smartwatches.

BITS BLOG

Samsung Introduces Two New Smartwatches

By BRIAN X. CHEN

The devices have a better battery life and use Samsung's own operating system.
WhatsApp founders, Brian Acton, left, and Jan Koum, center, prefer to operate lean and below the radar, with about 50 employees and a nondescript office.

DISRUPTIONS

After WhatsApp Deal, Visions of Magic Numbers

By NICK BILTON

How much money would it take for you to sell your start-up, quit your job or close your venture capital fund and walk away from it all?
Christian Gheorghe, Tidemark's founder and chief executive.

BITS BLOG

Opening the Corporation

By QUENTIN HARDY

The way people handle open source projects, by sharing a maximum amount of information, may become a standard for all kinds of corporate behavior.
For more technology news, go to NYTimes.com/Tech
ADVERTISEMENT
Sports
Jason Collins spent his first six and a half seasons with the Nets, who reached the N.B.A. finals twice during his tenure.
After Signing With Nets, Jason Collins Becomes First Openly Gay N.B.A. Player

By ANDREW KEH

The 35-year-old center has signed a 10-day contract that could put him in uniform Sunday night against the Lakers.
. Warriors 93, Nets 86: Big Shot by Curry and Frustrating Night for Nets
Jordan's Bobcats could send Carmelo Anthony to an early hiatus.

OFF THE DRIBBLE

Jordan Keeps Haunting Knicks' Playoff Hopes

By BENJAMIN HOFFMAN

First it was Michael Jordan's Bulls blocking the Knicks' way in the N.B.A. playoffs, and now it is his Bobcats.
. Hawks 107, Knicks 98: Ready to Shed 2 Players, Knicks Let Game Get Away
The Canadian hockey team sang to their national anthem after defeating Sweden to capture the gold medal.

CANADA 3, SWEDEN 0

Canada Defeats Sweden to Win Gold in Men's Hockey

By KEN BELSON

Sidney Crosby scored his first goal of the tournament as the Canadian men won their second consecutive Olympic title.
For more sports news, go to INYT.com/Sports
U.S. News
A Lesson for Detroit in Efforts to Aid a New Orleans Devastated by Katrina

By CAMPBELL ROBERTSON

Detroit can learn from New Orleans, where a fix that appeared rational to some was thrown aside for a way forward that has been messier but politically more palatable.
Opponents of Same-Sex Marriage Take Bad-for-Children Argument to Court

By ERIK ECKHOLM

Those testifying in defense of Michigan's ban will wield sharply disputed recent studies finding that the children of same-sex couples did not fare as well as children raised by married heterosexuals.
For more U.S. news, go to NYTimes.com/US
Opinion

OPINION

When Doctors Need to Lie

By SANDEEP JAUHAR

Misleading your patient? Defying his wishes? Sometimes in medicine these things are necessary.

TODAY'S EDITORIALS

What the Stimulus Accomplished

By THE EDITORIAL BOARD

Though ridiculed by Republicans, the 2009 Recovery Act saved the American economy.
. The F.C.C. Tries Again
. A Picasso in Trouble
Ross Douthat

OP-ED COLUMNIST

The Games Putin Plays

By ROSS DOUTHAT

The events in Ukraine offer a lesson in the limits of Russia's grand strategy.
. Columnist Page | Blog
For more opinion, go to INYT.com/Opinion

China has cornered gold, GoldMoney's Macleod tells Keiser Report: GATA | THE GATA DISPATCH February 23, 2014.

China has cornered gold, GoldMoney's Macleod tells Keiser Report

Submitted by cpowell on 07:33AM ET Sunday, February 23, 2014. Section: Daily Dispatches
10:30a ET Sunday, February 23, 2014
Dear Friend of GATA and Gold:
Interviewed this week by Max Keiser on "The Keiser Report" on the Russia Today network, GoldMoney research director Alasdair Macleod elaborates on his recent commentary asserting that most currencies are derivatives of the U.S. dollar and that if dollar creation slows, those other currencies may crash. Macleod adds that China has essentially cornered the gold market, though Western financial analysts don't want to believe it. The interview is not quite 14 minutes long and is posted at You Tube here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.