The “London Fix,” also known as the London Gold Fixing, is a twice-daily conference call among representatives of five major gold-trading firms. It’s where the price of gold is “fixed” or set. This benchmark is used worldwide and is considered one of the most important gold market events each day.
The London bullion market has a long history and is one of the oldest in the world, dating back to the 1600s. The London Gold Fixing itself was first instituted in 1919. Since then, London has held its place as a center for gold trading due to its strategic location and the established trust and reputation it has built over the centuries.
The price of gold is set in London largely because of historical reasons, but it’s also due to the large amount of gold traded in the city. London’s gold market is highly liquid, meaning there’s a high volume of gold being bought and sold, which helps ensure that the prices set during the London Gold Fixing are representative of supply and demand.
Today, the London Bullion Market Association (LBMA) oversees the process, which is now known as the LBMA Gold Price. The price is determined in an electronic, auction-based process where buyers and sellers across the globe can participate, contributing to a more transparent and inclusive process.
