Jim Sinclair’s Commentary
Mr. Williams shares the following with us.
– Payroll Gains Were Bloated by Seasonal-Factor Shenanigans; Unemployment Numbers Remained Inconsistent, Not Comparable Month-to-Month
– June Unemployment: 6.1% (U.3), 12.1% (U.6), 23.1% (ShadowStats)
– Economy Remains in Serious Trouble
– Trade Deficit Should Hammer Second-Quarter 2014 GDP, Subtracting In Excess of 1.0% from Initial Headline Growth Estimate
– Revisions to Real Construction Spending Showed Further Downside to First-Quarter GDP; May Detail Suggested a Negative Contribution to Second-Quarter GDP Growth
"No. 638: June Labor Data, May Trade Deficit, Construction and Median Household Income"
British MPs urge watchdog to probe price-rigging in gold market
By Sam Fleming and Daniel Schäfer in London
July 2, 2014 6:48 pm
British MPs have called on the UK’s financial watchdog to investigate allegations of price-rigging in the London gold market after a senior regulatory executive said that there may have been co-ordinated attempts to manipulate a crucial benchmark.
Members of the influential parliamentary Treasury select committee pressed the Financial Conduct Authority to act after hearing evidence on Wednesday from gold market analysts who believe there is scope to rig the daily price-setting process and that it has probably been exploited frequently.
“If this evidence is even half true, the regulators need to find a way of acting much more quickly,” Andrew Tyrie, chairman of the committee said. “Were they to conclude that their powers are inadequate, they should tell parliament.”
The London gold fix is a twice-daily auction process, controlled by four banks, that is used by everyone from central banks to jewellers and gold miners to set a reference price for bullion. It came under renewed scrutiny this May when the FCA fined Barclays £26m for price rigging by an options trader.
The watchdog so far has not launched a broader probe into the gold fix’s panel members – which includeBarclays, HSBC, Scotiabank and Société Générale and formerly Deutsche Bank.