Gold fixing - is it still needed?

The FT discusses whether the gold market needs a new standard for fixing the price of gold. This is an interesting issue given the problems with fixing of LIBOR prices, the manipulation of FX rates on fixes. Some banks may say it is not worth being involved with the gold fix even though the process has been round for over a century. 

Ultimately this is an issue of market design which has become a hot topic in economics. (It has become a hot topic across all disciplines in business schools.) Market design issues are associated with how to generate a thick market where many are willing to participate but still have it be safe from manipulation. Having a group of banks bring their order books together and determine a price when the market will balance is going to provide some information advantage to the fixing banks, yet having a blind electronic order matching system at a set time may lead to some disruptive surprises. There is an issue of trying to find a balance. Having review and suggesting some alternatives will be good for the market.