What is the 'London Spot Fix'

The London spot fix is a daily price per ounce for each of the precious metals (gold, silver, platinum and palladium) determined daily by a brief conference call among the five members of the London Gold Pool (Scotia-Mocatta, Barclays Capital, Deutsche Bank, HSBC and Société Générale). The London spot fix price is the price fixed at the moment when the conference call terminates.

London spot fix is also referred to as "London a.m. fix" and "London p.m. fix" or "London morning fix" and "London afternoon fix".

BREAKING DOWN 'London Spot Fix'

Members of the London Gold Pool belong to the London Bullion Market Association (LBMA) and are the five largest players in the gold bullion market. The LBMA provides the daily spot fix prices on its website in U.S. dollars, British pounds and euros. The price does not remain fixed throughout the morning and throughout the afternoon, however, and begins to vary immediately after the spot fix.

Because other derivatives and products are priced in terms of gold, the London spot fix remains an important aspect of daily trading. Additionally, many mining and refiners will use the gold set to price purchases and receipts. 

The LBMA Gold price is set twice daily at 10:30 and 15:00 GMT. The price for Silver is set at 12:00 GMT daily. Platinum and Palladium prices are fixed twice daily at 09:45 and 14:00 GMT.

The orders passed to the five banks are limit orders, meaning the customer has stipulated an at-worst price that which they would like to buy or sell. This means if the price of gold opens higher than a customers limit buy order it will not be executed upon open. 

RELATED TERMS
  1. Gold Fix

    The London Gold Fix was replaced in 2015 by The London Bullion ...
  2. Price Fixing

    Price fixing is setting the price of a product or service, rather ...
  3. Fixing

    Fixing is the practice of arbitrarily setting the price of a ...
  4. Fixed Cost

    A fixed cost is an expense that remains the same regardless of ...
  5. Financial Information Exchange ...

    Financial Information eXchange (FIX) is an electronic communication ...
  6. Fixed Capital

    Fixed capital includes the assets - such as property, plant and ...
Related Articles
  1. Managing Wealth

    How Much Money Do You Need to Live in London?

    Find out what it takes to live in London, including the average costs of living for students, professionals and unemployed individuals.
  2. Investing

    How Deutsche Bank Market Manipulation Impacts Investors (DB)

    Explore the ramifications of Deutsche Bank's admission that it manipulated gold and silver from 2007 to 2014, including its similarities to other schemes.
  3. Investing

    The Insiders Who Fix Rates for Gold, Currencies And Libor

    The system by which benchmark rates are fixed for interest rates, currencies and gold is archaic - and, many would argue, deeply flawed.
  4. Investing

    Deutsche Bank Doubles Down on London

    Despite fears Brexit would cause banks to flee London, and despite cutbacks elsewhere, Deutsche Bank just signed a 25-year lease on new offices in England's capitol.
  5. Tech

    Bitcoin Has Surpassed Gold in Settlement Volume, Despite Drop in Price

    The bitcoin market could settle nearly three times as much as the gold market this year.
  6. Investing

    Goldman Sachs: Gold Stocks Reach 'Sweet Spot' (GOLD, GFI)

    Although gold prices declined to a two-week low, Goldman Sachs proclaimed gold stocks were in a "sweet spot."
  7. Investing

    What Drives The Price Of Gold?

    Gold prices are based on the economy and actual uses, but there are many other factors that dictate gold's perceived value.
  8. Trading

    Combining Forex Spot And Futures Transactions

    The spot, futures and option currency markets can be traded together for maximum downside protection and profit.
  9. Investing

    8 Reasons To Own Gold

    This precious metal's rich history stems from its ability to maintain value over the long term.
RELATED FAQS
  1. How are fixed costs treated in cost accounting?

    Learn how fixed costs and variable costs are used in cost accounting to help a company's management in budgeting and controlling ... Read Answer >>
  2. What is the gold standard?

    Learn more about the gold standard, including its complicated global history and its connection to the fiat system and the ... Read Answer >>
  3. How do current assets and fixed assets differ?

    Current assets are short-term assets that are used up within one year. Fixed assets are physical assets and have a life of ... Read Answer >>
Trading Center