Fixing vs. Spot
Also: LBMA Fixing, London Fix, Spot Rate
The spot price is the continuously traded market price for immediate delivery, whereas the fixing is a reference price set only once (or twice) a day.
The gold price and the prices of the other precious metals reach buyers and sellers in two different forms: as the spot price and as the fixing. Both describe the same commodity – yet their methodology, timing and purpose differ fundamentally.
Spot Price – the Market Price in Real Time
The spot price (also called the spot rate) is the current trading price for physical precious metal or the corresponding contract with (near-)immediate settlement – usually within two business days (T+2). It is traded around the clock on the major marketplaces such as COMEX (New York), the LBMA (London) and Asian exchanges, and changes second by second in line with supply, demand and currency movements.
Spot prices are the basis for almost all dealer prices: bar and coin dealers add their premium (agio) to the spot price to arrive at their selling price.
Fixing – the Official Daily Reference Price
The LBMA Gold fixing (officially: LBMA Gold Price) is set twice a day – at 10:30 and 15:00 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) | 2x daily (AM / PM) |
| Determination | exchange trading (bid/ask) | electronic auction (IBA) |
| Purpose | trading, hedging | contracts, accounting, mine sales |
| Currency | mostly USD/oz, also GBP/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 buying gold bars or bullion coins, the spot price is the more relevant figure: it determines the entry price in real time. The fixing has more of a historical significance – as a number fixed once a day it is well suited to 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 movements, whereas the fixing only reacts at the next auction time.
In Brief
Spot is the living market price from second to second; the fixing is its once-a-day frozen snapshot – indispensable for contracts and accounts, but too slow for active trading.