London Gold Fixing Price

London Gold FixingThe price
of gold is fixed twice daily in London by the five members of the
London gold pool, all members of the London Bullion Market Association.
The fixes start at 10.30 a.m., and 3.00 p.m. London time. The length of
time taken to reach an agreed fixing price can vary. Nowadays it is
often reached in minutes, but we have known in take several hours on at
least one occasion. There are a number of common misconceptions about
the London gold fix.Three CurrenciesMany
people, including most of the media, are under the impression that the
gold price is fixed in US dollars. It is actually fixed in pounds
sterling (GBP), and Euros also, although the Euro pricing is fairly new.Media - Take NoteWhenever
you see a gold fix price quoted, it will almost always be in dollars.
This applies even in the UK. Most people in the UK who need to know a
gold price, need it because they have bought or sold some gold at some
predetermined price dependent on that particular fixing price.
Naturally because they are in the UK, they wish to know the price in
sterling. It is quite frustrating for many of these people to see a
price quoted in a newspaper, of more commonly on Ceefax or Teletext,
which is quoted in dollars. We have actually been telling the BBC's
Ceefax department about this for years, and suggesting that they give
the quotes in sterling and dollars , but they originally said there was
insufficient space on the screen, which was incorrect, they would think
about it (they appear to still be thinking). We have given up trying to
advise them.Not A Fixed PriceThe
other common error is for people to think the gold fix price is a fixed
price, as in today's price or this morning's price, and that all gold
transactions for the whole morning, afternoon or day, are carried out
at the fixing price. This is not true. The fix price is the price at
the exact instant in time at which it is agreed. Within seconds it will
be trading at different prices. Amateurs, and also many who should know
better, may then wonder what is the point, and why it is called a
fixing price. The simple answer is that the five members use it to
establish a market price which is fixed only for that precise moment,
at which they can balance their sales and purchase requirements,
including orders and commissions from clients. We ourselves often use
the London gold fixing as a basis for our transactions with other
professionals. We are also happy to do this with private individuals,
but we find most people are happier for us to quote them a current
"spot" price for gold. When we deal on the basis of a London fix, it
will always be a future fix, often the next one, but not necessarily.
We will agree to buy, or sell as the case may be, a fixed amount of
gold in the form of bars, krugerrands, sovereigns, or other gold
bullion formats, at either a percentage or a fixed amount relative to
the fix. Neither party knows what the actual striking price will be,
but this is usually not a problem. It is also possible to place a
conditional order, for example to buy 500 ounces at the next fix,
subject to a limit, so that if the fix is above a certain level the
transaction will not be concluded. The concept of dealing at an unknown
price may seem strange to some, but for most gold professionals, any
plusses and minuses usually average out over a period period of time.
It saves much time which would be wasted in haggling about two
different views of the market.ClosedThe London Gold Market closed in 1939, and re-opened on 22nd March 1954.

Where?London gold fix prices can be found on the site of the LBMA, the London Bullion Market Association.There
are also live spot gold prices on our own website, in up to 12
different currencies. We are not permitted to include a link here.
For the same reason, we cannot provide a live feed on this page to the most recent London Gold Fixing price, sorry.Was This Guide Useful?If
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