The Gold Fix is exactly what it seems…fixing the price of the Gold for a given day. How the fix works is that at the start of the day the “five-member” team of the “London Gold Market Fixing Ltd.” declare the buying and selling price of Gold for that particular day and then this price is used as the benchmark for pricing, buying, and selling Gold on that particular day. The price of the Gold is fixed twice a day – once at 10:30 a.m. 3:00 p.m. London Time.
As the price of Gold fluctuates every second, it is important to have a benchmark to refer to when someone is deciding on either buying or selling Gold.
The price of Gold was fixed only once a day in the morning until 1968. But since then, the second fixing was introduced at 3:00 p.m. London Time so as to correspond to the opening of the U.S. markets. Jindal Bullion provides you with up-to-date information about both fixes the Gold AM Fix and the Gold PM Fix so you are never in the dark about this information.
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| Gold Trading on Live Rate |
Once the fixing process starts, a price is proposed that is near to the “Gold Spot Price”. Then a simulation is carried out by the participants to see the result of trading on that price. This simulation includes both the Paper Gold and the Physical Gold. If the banks are satisfied with the fix price, then they would state the amount of Gold that they wish to buy or sell. If that is not the case then the “chair” changes the price and the new price is floated and another simulation is carried out to see if that price appeals to the banks. The “chair” either raises or lowers the price of the gold as per the amount of Gold demanded and supplied criteria.
If the “chair” raises the price, then some purchase orders might become invalid due to the lower value and that price might meet the requirements of some sellers increasing the number of sellers in the mix.
Conversely, if the “chair” lowers the price, some additional purchase orders might trickle in and some of the sellers who are not comfortable to sell on that low price might back off. Further know more information please visit on Jindal Bullion
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