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