* Bafin has been looking at gold, silver fixings for months
* Bafin says probe still ongoing
* Watchdog asked Deutsche Bank for documents in gold probe-FT
FRANKFURT, Dec 13 (Reuters) - German banking regulator Bafinhas demanded documents from Deutsche Bank as part ofa probe into suspected manipulation of benchmark gold and silverprices by banks, the Financial Times reported, citing sources.
Bafin has questioned the bank's staff during several on-siteinspections over the past few months, the newspaper said on itswebsite, citing people familiar with the matter.()
Bafin on Friday repeated that besides Libor and Euribor, ithas been looking at other benchmark setting processes like goldand silver price fixings at individual banks.
"The examinations were launched several months ago and arestill ongoing," a Bafin spokesman said.
He declined to comment on the newspaper's report but saidBafin has the power to conduct interviews and request documentsor other information from banks in its enquiries.
Following probes into benchmark interest rate rigging bybanks, Bafin is investigating whether traders may have colludedto influence the level of the precious metals benchmarks fortheir own benefit, a source close to the regulator had said inlate November, adding no concrete evidence of wrongdoing hadbeen found so far.
Deutsche Bank is the only German lender involved in goldfixing and is part of the investigation, the source had said.
Deutsche Bank is also one of three banks that take part inthe equivalent process for silver.
The regulator, meanwhile, is also examining the derivativesindex Isdafix.
Currently, gold fixing happens twice a day by teleconferencewith five banks: Deutsche Bank, Bank of NovaScotia-ScotiaMocatta, Barclays Bank Plc, HSBCBank USA, NA and Societe Generale. The fixings areused to determine prices globally.
Deutsche Bank declined to comment on Friday.
BIG REVAMP
Germany's biggest lender announced last week that it waspulling the plug on its global commodities trading business inenergy, agriculture, base metals, coal and iron ore, although itwould continue trading in precious metals and financialderivatives.
The move came as the financial sector's role in commoditytrading has been squeezed by lower margins, higher capitalrequirements and growing political and regulatory scrutiny ofthe role of banks in the natural resources supply chain
Deutsche Bank has been pursuing an ambitious culturaltransformation plan led by its co-chief executives JuergenFitschen and Anshu Jain, and as it works through a long list ofscandals, investigations and fines that came in the wake of thefinancial crisis.
The bank set aside 1.2 billion euros ($1.65 billion) forpotential legal charges in the third quarter, wiping out profitand raising the total amount of legal reserves to 4.1 billioneuros.
EU antitrust regulators this month slapped Deutsche Bankwith a 725 million euro fine, the biggest penalty handed out tosix banks in the regulators' probe into rigging of the Libor andEuribor benchmark interest rates.
The Libor interest rate scandal has prompted authorities andbanking industry bodies worldwide to overhaul rate-settingprocesses. Probes are also under way in the United States andBritain.
Britain's Financial Conduct Authority had asked those whoadminister major, non-interest rate-related benchmarks,including gold, to assess by July next year how they comply withnew global regulatory principles governing all types of indexesfollowing the Libor scandal.
The FCA declined comment on Friday.