What does Gold Fix mean?
A century old process of fixing gold price at London bullion market, the world’s largest bullion market. The five participating banks, who are also members of the London Bullion Market Association (LBMA), act as market makers. The benchmark price is fixed twice each day through computerized simulation.
Futures Knowledge Explains Gold Fix
Though Gold Fix is designed to fix a price for settling contracts between members of the London bullion market, but the gold price so determined is used as a benchmark for pricing the gold products and derivatives throughout the world's markets.
The gold fix had been in operation since 1919. But in March 2015, LBMA Gold Price, new gold price benchmark, has replaced the London Gold Fix.