There is a big difference between suspecting manipulation in precious metals and cases that were actually documented.
In 2020, JPMorgan agreed to pay $920.2 million to resolve investigations into years of manipulative trading, including spoofing in precious-metals futures.
Spoofing is simple in principle: traders place orders they do not actually intend to execute in order to create a false impression of supply or demand and influence other market participants.
And JPMorgan wasn’t alone.
Deutsche Bank, UBS and HSBC also faced CFTC enforcement actions related to spoofing or manipulation in precious-metals futures. Deutsche Bank alone paid $30 million in 2018 as part of a settlement involving manipulation and spoofing violations.
When someone dismisses the whole subject as a conspiracy theory, it is worth remembering the history.
Some cases of manipulation in these markets were not just allegations.
They were proven, prosecuted and penalized.
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