UPDATE 2-Deutsche quits gold price-setting as regulators investigate fix

Fri Jan 17, 2014 8:32am EST
 
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* German regulator has been investigating gold-fixing process

* Deutsche move comes after scaling back commodity business

* Others may follow Deutsche's lead - source

* Deutsche, rivals embroiled in probes of FX, interest rates

By Eric Onstad

LONDON, Jan 17 (Reuters) - Deutsche Bank will withdraw from gold and silver benchmark price setting, it said on Friday, as European regulators investigate suspected manipulation of precious metals prices by banks.

Germany's largest bank and some of its rivals are taking a battering over a series of other scandals and inquiries regarding manipulation of interest rates and foreign exchange.

On Wednesday, global investigations into alleged currency market manipulation intensified as U.S. regulators descended on Citigroup's London offices and Deutsche suspended several traders in New York, sources told Reuters.

Deutsche is one of five banks involved in the twice-daily gold fix for global price setting and said it was quitting the process after withdrawing from the bulk of its commodities business.   Continued...