Gold Price London Fix!!

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What is the gold price fixing?

The five members of The London Gold Market Fixing Ltd who fixed gold price by a conference call, which used as a point of reference to pricing the leading global gold products and derivatives.

How to put gold price fix?

The Gold Fix creates the price at which supply meets demand – through all the cooperating banks. Another reason the cooperators require being members of the London Bullion Market Association; they are Scotia-Mocatta, Barclays Capital (Replaced N M Rothschild & Sons when they stepped down from it), Deutsche Bank, HSBC Bank and Société Générale. The price of gold is fixed two times per business day at 10:30 a.m. and 3 p.m., London time, and fixed in Pound sterling (GBP), European Euros (EUR) and United States dollars (USD).
The gold fix commonly starts with the chairman announcing a gold price which is extremely near the enduring spot market gold price. Then, the cooperators will decide to fix it in an upright position or not, according to their customers’ supply and demand. While waiting for all of the members’ flag put down, the gold price is fixed. Else ways, the chairman must change the planned price.

Why  fix the gold prices?

Many of the banks’ orders are limit orders. To clear it, the seller or buyer is ready to sell or buy at any price below or above a certain limit. Therefore, if the chairman lowers the price, more orders possibly will come; on the other hand, more orders may withdraw.
To conclude, it is surely important that the gold fix price is not a “fixed price”. The gold fixing is the price at a certain time at which it is agreed. In seconds, the price of gold will vary again. To elaborate more, our business deal of gold is not at the London gold fixing, that is upcoming to the gold fixing. As we deal our trades, the London gold fixing frequently to be used as a point of reference.