LONDON (Reuters) - U.S. regulators are set to drop a four-year investigation into the possible manipulation of the silver market after failing to find enough evidence to support a legal case, the Financial Times reported on Sunday, citing three people familiar with the situation.
The Commodity Futures Trading Commission first announced that it was investigating “complaints of misconduct in the silver market” in September 2008 after a group of precious metals investors alleged manipulation, the FT reported.
It said that while the CFTC has not yet formally determined the outcome of the investigation, leaving the possibility that staff could be instructed to dig deeper, the agency does not currently have sufficient evidence to bring a case.
A decision to end the investigation would likely anger some U.S. silver investors, the newspaper said.
“I‘m sure it will be met with some concern from a certain group of aggressive silver speculators,” one person familiar with the investigation told the FT.
Previous CFTC silver inquiries in 2004 and 2008 found no evidence of wrongdoing, the paper noted.
Reporting by Jan Harvey; Editing by Alison Birrane