The gold fix rate is used as a benchmark for pricing the majority of global gold products and derivatives. The London Gold Fix involves gold dealers from London's five biggest bullion banks establishing a common transaction price for a large pool of purchase and sale orders. They do this twice each business day - first at 10:30am and then again at 3pm.
The participating bullion banks will be acting both on their own behalf and for those customers of theirs who have issued limit orders for them to trade at the London Gold Fix price. No-one knows what the Gold Fix will be before it is declared.
By Barry Norman, Investors Trading Academy.
