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"Electronic trading generally has a lot of
oversight and I think the exchanges are well
equipped to discover trading patterns that
are not aligned with a regular functioning
market … As soon as you move onto elec-
tronic exchange, you get an electronic trail
and it becomes easier for oversight."
Current efforts to find a replacement
for the London silver fix may result in
creating a template that the London gold
fix could utilize. "Look at what silver has
been doing at the moment; there's quite
a lot of interest from 10 different sources
who have come up with suggestions as
to how the silver fix could be carried out
going forward," Hansen said. "The result
might create a foundation for what could
potentially happen with gold."
Away from the issue of attempted
manipulation, the London gold fix has
faced competition from alternatives.
"Those who want to be in the market have
multiple choices, the fix being just one of
them," Hansen said. "[Overall, the gold]
market has been struggling for the past
year at least with a lack of activity, a lack
of interest and rising apathy from investors
because it's not really been an investment
story. [Still], I suppose that this is natural
following the 12-year non-stop rally we've
seen. The market is taking a step back and
refocusing. But it will have its time again
that's for sure."
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