S'pore shelves plans for daily reference gold price: sources

[SINGAPORE] Singapore has dropped plans to set a daily reference price for gold, four sources with direct knowledge of the matter said, as regulators in Europe investigate suspected manipulation of precious metals prices by banks.

The Singapore Bullion Market Association (SBMA), an industry body, has been in discussions for nearly a year on launching a price benchmark in Asian trading hours similar to the twice-daily London fix for spot gold prices, the sources said. But the European probe has made banks reluctant to participate, they added. "The banks' compliance (teams) and managements are not very keen at this stage to discuss about fixing and benchmark pricing," said one source. Another source said the topic of gold fixing has become too sensitive for banks to be associated with for now.

Singapore is still in talks to introduce some form of pricing mechanism for gold, the sources said, as part of efforts to make it a trading hub for precious metals. The SBMA declined to comment.