If you are interested in investing in gold, you may have heard of the London PM Gold Fix. This is a daily gold price fixing process that takes place in London, where representatives from major banks meet to set the price of gold for the day. But what time does this process occur?
The London PM Gold Fix Time
The London PM Gold Fix takes place every weekday at 3:00 pm (GMT). During this time, representatives from five major banks – Barclays, HSBC, Société Générale, Bank of Nova Scotia, and Goldman Sachs – get together to determine the price of gold.
What is Gold Fixing?
Gold fixing is a process used to set the price of gold based on supply and demand. During the gold fixing process, participants agree on a price for buying and selling gold that is representative of market conditions at that moment.
The London PM Gold Fix is one of the most widely recognized gold fixing processes in the world. It has been used since 1919 by major banks and investors as a benchmark for determining the price of gold.
Why Is The London PM Gold Fix Important?
The London PM Gold Fix is important because it provides a benchmark for investors to use when setting prices for their own trades. It also helps to establish a fair market value for gold that is recognized around the world.
In addition, many other financial instruments are linked to the price of gold, including exchange-traded funds (ETFs), futures contracts, and options contracts. The London PM Gold Fix provides a basis for pricing these instruments accurately.
How Does The London PM Gold Fix Work?
During the London PM Gold Fix process, each bank representative submits their buy and sell orders for gold based on current market conditions. A chairperson then calculates an average price based on these orders.
If there are any discrepancies between the orders submitted by each bank, the chairperson will adjust the price until a consensus is reached. The final price becomes the London PM Gold Fix for that day.
- Five major banks participate in the London PM Gold Fix.
- The process takes place every weekday at 3:00 pm (GMT).
- The gold fixing process helps to establish a fair market value for gold that is recognized around the world.
- Many financial instruments are linked to the price of gold, including ETFs, futures contracts, and options contracts.
- The final price becomes the London PM Gold Fix for that day.
In Conclusion
The London PM Gold Fix is an important process for establishing a benchmark price for gold each day. It takes place at 3:00 pm (GMT) every weekday and involves representatives from five major banks. The final price becomes the London PM Gold Fix for that day and is used as a benchmark by investors around the world.