London fix in gold trading

The London fix is the traditional name for the benchmark gold price set in London twice a day. From 1919 it was agreed by a small group of bullion banks in a telephone or in-person fixing; since 2015 it has been the LBMA Gold Price, an electronic auction run by an independent administrator with more participants and published rules. The a.m. fix is at 10:30 a.m. and the p.m. fix at 3 p.m. London time. The p.m. price is the one most contracts and indices reference.

How it applies to gold trading

Although XAUUSD trades continuously, the fix still matters. Refiners, miners, jewelers and central banks price physical deals against it, ETFs value their holdings with it, and historical gold price series (including the long-run records on this site) are built from the p.m. fix. On the chart, the minutes around 3 p.m. London often show a small spike in activity as orders tied to the auction are executed, and the London close that follows shifts liquidity to New York.

Traders sometimes compare the day’s fixes with the spot price to read short-term physical demand: a fix well above the surrounding spot quotes suggests heavy buying interest at the auction.

A common mistake

Assuming the fix is where gold closed or opened. It is a mid-day benchmark; the day’s open and close are defined by the trading session, not the auction.

See also: LBMA, London close, Spot gold, Gold ETF.

Frequently asked questions