Fixing vs. Spot
Also: LBMA Fixing, London Fix, Cash Price
The spot price is the continuously traded market price for immediate delivery, while the fixing is a reference price determined only once a day.
The gold price and the prices of other precious metals appear to buyers and sellers in two distinct forms: as the spot price and as the fixing. Both describe the same commodity – but their methodology, timing, and purpose differ fundamentally.
Spot Price – the Real-Time Market Price
The spot price (also known as the cash price) is the current trading price for physical precious metal or the corresponding contract with (near-)immediate settlement – typically within two business days (T+2). It is traded around the clock on the major marketplaces such as COMEX (New York), LBMA (London), and Asian exchanges, and changes second by second in response to supply, demand, and currency movements.
Spot prices form the basis for virtually all dealer prices: bar and coin dealers add their premium (agio) to the spot price to calculate their selling price.
Fixing – the Official Daily Reference Price
The LBMA Gold Fixing (officially: LBMA Gold Price) is determined twice daily – at 10:30 a.m. and 3:00 p.m. London time – through an electronic auction process overseen by ICE Benchmark Administration (IBA). It provides a single, daily reference price in USD per troy ounce.
| Feature | Spot Price | Fixing |
|---|---|---|
| Frequency | continuous (24/5) | 2× daily (AM / PM) |
| Determination | exchange trading (Bid/Ask) | electronic auction (IBA) |
| Purpose | trading, hedging | contracts, accounting, mine sales |
| Currency | usually USD/oz, also EUR | USD/oz (official publication) |
Mines, central banks, refineries, and institutional buyers use the fixing as a binding settlement basis in long-term supply contracts. Many gold savings plans also settle at the fixing price.
Practical Relevance for Private Investors
For the purchase of gold bars or bullion coins, the spot price is the more relevant figure: it determines the entry price in real time. The fixing is more of historical significance – as a daily fixed number, it is well suited for historical price comparisons and portfolio valuations.
The difference between the AM fixing and the current spot can – depending on the time of day and market conditions – amount to several dollars per ounce. The spot price reacts immediately to exchange rate fluctuations, while the fixing only adjusts at the next auction time.
In Brief
Spot is the living market price from second to second; the fixing is its once-daily frozen snapshot – indispensable for contracts and balance sheets, but too slow for active trading.