London Gold Fix Price 2025: How It Works & Bullion Trading Explained

Katrina Ávila Munichiello brings over fourteen years of expertise as an editor, writer, fact-checker, and proofreader, specializing in both print and digital publications.

What Is the London Gold Fix?

The London Gold Fix was historically the benchmark method for setting the price of gold per troy ounce in US dollars. In 2015, this process was replaced by the London Bullion Market Association (LBMA) Gold Price, which continues to set gold prices twice daily at 10:30 AM and 3:00 PM London GMT.

How the London Gold Fix Worked

Originally established in 1919, the London Gold Fix involved the five largest bullion banks, traders, and refiners—known collectively as London Gold Market Fixing Ltd.—including N.M. Rothschild, Mocatta & Goldsmid, Pixley & Abell, Samuel Montagu & Co., and Sharps Wilkins. These entities acted as market makers, balancing client orders and their own interests to propose a fair gold price.

The fixing process began with the chair suggesting a price close to the current spot market value. Participants then revealed their buy and sell limit orders, estimating the volume of gold they were willing to trade at that price.

Key Highlights

• The London Gold Fix was the traditional method for setting gold prices by top bullion traders and banks.
• In 2015, it transitioned to the LBMA Gold Price system.
• Currently, fifteen accredited market participants contribute to the LBMA Gold Price.

Today, the LBMA manages the Good Delivery Lists for gold and silver, which establish global standards for precious metal bars.

Founded in 1987 by the Bank of England—the former regulator of the bullion market—the LBMA oversees refining standards, trading documentation, and promotes best practices. The ICE Benchmark Administration (IBA) independently administers the LBMA Gold Price auction platform and methodology, while the LBMA retains intellectual property rights.

The LBMA represents a broad range of key market players, including refiners, fabricators, traders, and security carriers. Its fifteen accredited members include national banks and trading firms that actively shape the global bullion market.

Bullion Trading and Market History

London remains the epicenter of global bullion trade, supported by an international membership and client base. The gold rush of 1697 introduced Brazilian gold to London, prompting the Bank of England to establish a dedicated vault. Subsequent gold discoveries in California, Australia, and South Africa further bolstered London's gold reserves.

Refineries developed near the Bank of England to process these gold supplies. In 1750, the Bank created the London Good Delivery List to certify refineries producing gold bars meeting strict quality standards. The LBMA now administers these lists, continuing a legacy dating back to the mid-19th century.

Bullion trading—including spot, forwards, and wholesale deposits—is governed by the Global Precious Metals Code, launched in 2017. This code sets rigorous standards to ensure a transparent, fair, and efficient over-the-counter (OTC) precious metals market. It emphasizes ethics, governance, compliance, risk management, information sharing, and business conduct to uphold market integrity.

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