London open in gold trading

The London open marks the start of the European trading day, around 8 a.m. London time (3 a.m. New York during US daylight saving, 2 a.m. otherwise, with a one-hour shift when the two regions change clocks on different dates). London is the center of the physical gold market, and its open brings the bullion banks, European funds and the first large flows of the day. Spreads tighten, ranges expand and the Asian range is usually tested.

How it applies to gold trading

The first one to two hours of London are among the most traded on XAUUSD. The typical pattern is a break or sweep of one side of the Asian range, followed either by continuation (a trend day) or a reversal through the range (a Judas swing). Many session-based strategies are built entirely around this window: Asian range breakouts, ICT London killzone setups and power-of-three entries all key off it. The 10:30 a.m. London LBMA auction is a secondary point of interest.

After the first move, London often settles into a trend toward the New York open, when the next expansion arrives. The London session ends around 4:30 p.m. London time with a second, smaller burst of activity.

A common mistake

Treating the first break of the Asian range as the direction for the day. On many days the first move is the trap; waiting for confirmation or for the retest costs some trades and avoids many.

See also: Asian range, Killzone, Judas swing, London close.

Frequently asked questions