London Gold Prices

Gold is constantly being traded all over the world. Its spot price changes every minute with its trading. It is the only commodity that is traded on a 24x7 basis. No matter what time it is, there is bound to be someone somewhere in the world actively trading gold at that moment.

Many financial centers around the world are actively trading gold; be it New York, Tokyo, Hong Kong, Dubai, London or anywhere else in the world.

London market

However, London seems to be the more favorite watch post for the gold market today. It could be stemmed from a historical aspect where in times past, London held the symbolism of the “London Gold Fix” for getting the daily gold prices with all watching and trading gold at the prices that London dictates. This phenomenon has been happening for about a century; although London is not the only gold market today nor the most active, it still holds an attachment for many who seek the current price of gold today.

Much more when media quotes of gold price implies as “London gold” or “gold fix in London”. It is rare to have gold price fix or quotes from New York, Tokyo, Geneva or Sydney.

London Gold “Fix”

This term was coined out of a mechanism where gold prices were set and closed at the end of a trading day at London where tons of gold are traded every day; hence, the bullion market refers strongly to the gold price that is set at London’s bullion market.

The daily gold price setting is confirmed by the London Gold Market Fixing Ltd which is a 5 member organization. This group determines the price of gold on a daily basis based on the day’s market activity of gold. There is usually no disagreement over the gold price among the members.

The gold price is ‘fixed’ by this group at every morning and every afternoon after the London bullion market opens and closes as its members determine the gold price via teleconference. Of course before the electronic age, the group has to meet physically.

From the first fix on September 12, 1919, gold price is still fixed to set the price of gold products in the global market today. Although there was a brief interruption to the gold fix during WWII, the fix resumed after the war and has continued since.

London Gold Market Fixing Ltd

Gold price is fixed today in 3 major currencies – the US dollars, Euros and British pounds sterling. There have been many changes to the 5 members of this gold fix group due to mergers and business model changes. Today, the London Gold Market Fixing Ltd comprises members from Scotia-Mocatta, Barclays Capital, Deutsche Bank, HSBC and Societe Generale.