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What is the Gold Fix Price?

Monday, July 17, 2017

Set by the London Bullion Market Association (LBMA), the gold fix price (otherwise known as the ‘LBMA Gold Price’ or the ‘London fix’) is a benchmark regulated by the UK’s Financial Conduct Authority (FCA).

Whilst the LBMA owns the gold fix price, it is operated by the ICE Benchmark Administration (IBA). The IBA’s role is to ‘ensure that the LBMA gold price has integrity, represents the underlying market interest for gold and complies with all applicable regulations’.

IBA administer the auction independently with prices set twice a day as the five members of the London Gold Pool come together on a conference call. The first is at 10:30am UK time each business day (the ‘London am fix’ or ‘London morning fix’). As other countries wake up and start trading gold, the fix gold price is then set again according to COMEX, a division of the New York Mercantile Exchange (NYMEX), and at 3pm UK time for the ‘London pm fix’ or ‘London afternoon fix’.

As the gold market operates 24 hours a day and therefore doesn’t have a closing price, the afternoon gold fix price is often used to indicate a closing price on any given day.

The price on the website is provided in pounds, US dollars and Euros and it’s focused on providing a price per troy ounce, the traditional unit of weight used for precious metals. It’s a term derived from the French town of Troyes, where, in the Middle Ages, the unit was first used. One troy ounce is equal to just over 31 grams.

You can visit the IBA’s website to find the gold fix price in the following sixteen currencies:

  • Australian Dollars
  • British Pounds
  • Canadian Dollars
  • Euros
  • Onshore and offshore Yuan
  • Indian Rupees
  • Japanese Yen
  • Malaysian Ringgit
  • Russian Roubles
  • Singapore Dollars
  • South African Rand
  • Swiss Francs
  • New Taiwan Dollars
  • Thai Baht
  • Turkish Lira

The Gold Bullion Co. publish the live price of gold in a chart. We use the gold fix price as a bench to allow us to remain competitive when pricing our huge range of gold bullion bars and coins.

‘Accidental’ Sale of 1.8m Ounces of Gold

Monday, July 10, 2017

The price of gold plummeted towards the end of last month (26th June) when a trader ‘accidentally’ sold 1.8 million ounces of gold.

Prices hit a 5-week low of £977.65 with traders agreeing that it had likely been a mistake.

Ben Kumar, investment manager at 7 Investment Management, told the Daily Mail: “I think it always gives people a bit of pause for thought to see a market can be moved like this. It’s hard to understand how it happens, with all the checks and balances in place, but there is always the possibility that someone adds an extra zero to a trade and it has these unintended consequences.”

MKS trader Bernard Sin agreed. He told Reuters: “Clearly somebody sold it by mistake and bought it back quickly, triggering stops below $1,250.”

It could also be possible that a computer error is to blame. Traders use programming to monitor markets and buy or sell according to an extremely complicated algorithm. Whilst generally very reliable, these programs can sometimes make a mistake, leading to spikes or falls in the market - known as flash crashes - that can’t always be explained.

Tom Beckett, chief investment officer at Psigma Investment Management, told the Daily Mail: “It could be that this was a computer algorithm. There are risks to automated trading and it can lead to big spikes or falls in the market which can’t be explained.”

Speaking of such flash crashes, David Govett, head of precious metals trading at Marex Spectron Group, told Bloomberg that these swings could become more widespread given the current state of play. He added: “The more they happen, the worse they will become as people back away from holding positions."

Despite the recent volatility, investors should not be discouraged. Traders and the market as a whole are still seeing gold as a good insurance policy worth holding in a world of political instability and uncertainty.

Mr Beckett added: “Investing in gold is a sensible move at the moment, with so much political uncertainty across the world. The gold price is up almost 10 per cent since the start of the year and I expect it to go up further.”

Whilst no one can predict future prices of gold exactly, the current climate and investor response does suggest that it’s worth considering buying gold bullion as part of your portfolio.

Gold Bullion Market Update – June 2017

Friday, June 30, 2017

Gold bullion market update

The gold price started the month on 1st June 2017 at £980.76 per troy ounce, dipping below that price again a couple of times throughout the rest of the month and ending June on £957.41 on the 30th at 16:17.

Prices were seemingly unaffected following the terror attack in London on 3rd June, with gold reaching an almost 7-week high just 3 days later.

That high saw the gold price peak at £1,003.37 on 6th June after a steady climb from its lowest price in May of £943.98. The last time gold priced so well was on 18th April 2017, when it stood at £1,003.46 following a fall from the highest price of the year to date - £1,025.91 on 13th April.

Gold hit a 5-week low towards the end of the month, however, recording £977.65 on 26th June following a huge sell order that was, according to Reuters, a mistake. "Clearly somebody sold it by mistake and bought it back quickly, triggering stops below $1,250," said MKS trader Bernard Sin.

Investors looking to buy gold bullion should not be deterred, however. Sin told the news agency: "Fundamentally, there is still a lot of uncertainty in the world, with Italian bank bailouts, Trump's policies and Brexit. The world is in geopolitical chaos and gold is still good insurance."

Gold bullion coin news

With Canada celebrating its 150th birthday on 1st July, the Royal Canadian Mint released specially designed 2017-dated circulation coins as lasting keepsakes of this milestone year.

The two-dollar Canada 150 coin is the world’s first bimetallic coin and the first circulation coin to feature glow-in-the-dark technology.

The Gold Bullion Co. stock investment gold bullion coins from the Royal Canadian Mint, including those with the historic 2017 mint mark that carry a special appeal to collectors.

The iconic South African Krugerrand coin also has a birthday to look forward to in July. First produced on 3rd July 1967, it turns 50 this year and Krugerrands carrying the 2017 mint mark are also available from The Gold Bullion Co.