Sharps Pixley CEO Says London Gold Fix Isn’t Manipulated

Mineweb reported yesterday that Ross Norman, CEO of Sharps Pixley, has come forward to say that contrary to the claims of a recent research report, the London gold fix is not manipulated.

As quoted in the market news:

Speaking on Canada’s Business News Network on Friday, Norman said that the London gold fix, that has been running since 1919 is a ‘price discovery mechanism involving hundreds of counterparts’ and the five fixing members are just ‘conduits to the process’.

And, he said, that as a result of this, any manipulation would be arbitraged out because people would be selling or buying correspondingly if there was a mispricing there.

‘The fact that people can trade during the fix in other parallel markets supports the notion that there is no manipulation, there is futures trade going on in New York there is trading going on in the ETF, in parallel, so any attempt to manipulate the price in anyone’s favour will be arbitraged out in those parallel markets.

‘It is a fundamental failure of this research report to misunderstand that,’ he said.

Click here to read the full Mineweb report.