London Fix (also known as London Gold Fixing) is a reference price for gold, set twice a day in London. This price serves as a global standard for trading gold and other precious metals.
How does London Fix work?
- The price is set twice a day (at 10:30 AM and 3:00 PM London time) on weekdays.
- The process is managed by the London Bullion Market Association (LBMA).
- The price is determined based on supply and demand by major market participants, including large banks and precious metal traders.
- London Fix is crucial for determining prices of investment gold, bars, and coins worldwide.
Why is London Fix important?
- It is used as a reference price for both wholesale and retail markets.
- It ensures transparency and stability in gold and other precious metal pricing.
- It serves as a basis for various financial instruments, such as gold derivatives and futures contracts.
Today, London Fix is more commonly known as LBMA Gold Price, but the pricing principle remains the same.