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. Bullion Market

    A bullion market is a market through which buyers and sellers ...
  6. Fixed Income Forward

    A fixed income forward is a contract between two parties to either ...
Related Articles
  1. Insights

    Wall Street May Be Brexit's Big Winner (MS, JPM)

    New York is poised to become the financial capital of Europe when the UK - and London - separate from the EU as part of Brexit
  2. 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.
  3. Investing

    Fixed Income Trader: Career Path & Qualifications

    Discover the career path the most fixed income traders follow and learn more about the qualifications needed and the average salary they earn.
  4. 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.
  5. Investing

    GLD vs. UBG: A Gold ETF vs. ETN Case Study

    Explore the financial profile of two gold exchange-traded products, and discover what types of investors may be interested in investing in these funds.
  6. Investing

    GLD: iShares Gold Trust ETF

    Learn about the SPDR Gold Shares ETF, how it tracks the price of gold, and what type of investors may want to hold shares in their portfolios.
  7. Investing

    Does it Still Pay to Invest in Gold?

    Gold's appeal dates back thousands of years and investors now have several different options when it comes to investing in the royal metal. Find out whether gold can live up to the hype.
  8. 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.
  9. Investing

    Top 5 Gold ETFs for 2018

    Gold ETFs offer a convenient way to take advantage of the volatility of the precious metals market.
  10. Investing

    Investing in Gold: Direct Vs. Professional Management (ABX, GG)

    Find out how you can access the gold market through common stock, futures contracts, and actively managed or passively managed ETFs and mutual funds.
RELATED FAQS
  1. What is the difference between fixed cost and total fixed cost?

    Learn what a fixed cost is, what a variable cost is, what total fixed costs are, and the difference between a fixed cost ... Read Answer >>
  2. What is the fixed asset turnover ratio and why is it important?

    Learn about the fixed asset turnover ratio and how this calculation is used to analyze how efficiently a company uses its ... Read Answer >>
  3. What are the main advantages of fixed income securities?

    Learn why the addition of fixed income securities are common among investors who are attempting to limit their exposure to ... Read Answer >>
  4. 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 >>
Hot Definitions
  1. Quick Ratio

    The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
  2. Leverage

    Leverage results from using borrowed capital as a source of funding when investing to expand the firm's asset base and generate ...
  3. Financial Risk

    Financial risk is the possibility that shareholders will lose money when investing in a company if its cash flow fails to ...
  4. Enterprise Value (EV)

    Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market ...
  5. Relative Strength Index - RSI

    Relative Strength Indicator (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent ...
  6. Dividend

    A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
Trading Center