Gold prices are down Wednesday morning. Today, the U.S. will release economic data, including the weekly MBA mortgage applications survey and the DOE’s weekly report on liquid energy stocks. As the week progresses, traders and investors are showing an increased appetite for risk, which negatively impacts the appeal of safe-haven metals. The price of gold is trading at $2,506.54, down $18.10. The price of silver is trading at $29.40, down 57 cents.
Goldman Sachs, BASF, HSBC, and ICBC Standard Bank have agreed to a $20 million settlement to resolve a nearly decade-old antitrust lawsuit. The lawsuit accused these entities of conspiring to suppress the prices of platinum and palladium. The preliminary settlement was filed and approved by U.S. District Judge Gregory Woods in Manhattan. Despite agreeing to the settlement, all four defendants denied any wrongdoing. The case involved allegations that the defendants manipulated the twice-daily platinum and palladium price-fixings by sharing customer data, front-running expected price moves, and placing fake “spoof” orders from January 1, 2008, to November 30, 2014.
Platinum and palladium are crucial for various industries, including automotive, dentistry, and jewelry due to their use in catalytic converters. The purchasers of these metals claimed that the alleged price suppression reduced costs for banks and their clients and helped banks avoid losses on short positions in futures markets. This lawsuit is part of broader litigation in Manhattan accusing major banks of collusion in different markets.
