What is the Gold Fix?
To help facilitate trades on the London gold market, the price of gold is "fixed" twice each weekday. The Gold Fix is determined by a five member panel, known as The London Gold Market Fixing Ltd.
The Gold Fix is used to help members of the London Bullion Market Association (LBMA) complete trades. The gold fix sets values in US dollars, British Pounds and Euros, and is used as a benchmark price by most of the world’s markets for bullion and other gold derivatives.
The London Gold Market Fixing panel is manned by banks who participate in gold trades and who are
The idea of the gold fix is to determine the price at which orders to buy and sell held by each of the panellists balance. The proposed price is raised and lowered until that balancing point is identified. Gold buying customers are levied 20 cents per Troy ounce traded to help fund the fixing process.
The gold fix process has been in operation since 1919, working in exactly the same manner to this day. The only difference is that fixing meetings now take place via telephone conference calls, rather than face-to-face.