Loding Loading ...
X
Century is regulated by the Securities and Commodities Authority. CFDs are leveraged products that incur a high level of risk. Know more
  • AR AR
Century Financial Consultancy
  • Home
  • gold am/pm fixing

LBMA Gold Price Today

 

Gold AM & PM Fixing Explained

How the AM & PM Fixing Process Works

Here is a step-by-step process of how the Gold Fixing Process works:

Twice Daily Auctions: It’s called an auction because the LBMA Gold Price is discovered through a bidding process, which contains multiple rounds and dynamic pricing, which is transparent and competitive.
The auctions happen twice daily – 13:30 and 18:00 (UAE Time), known as the AM and PM Fix
Electronically Run: The auction is managed in a secure online platform by the ICE Benchmark Administration
Participants submit orders: Major financial institutions and firms (JP Morgan, Morgan Stanley, Bank of China, HSBC etc.) submit their respective data which includes:

Buy Volume
(How much Gold they want to buy)

Sell Volume
(How much Gold they want to sell)

Orders are based on client demand, internal positions, and market sentiment.

Auctions begin: The IBA sets a starting price close to current market levels. Other banks and institutions enter their bids with respective buy/sell volumes at that price.
Price Adjustments: If Buying Volume is not equal to Selling Volume then the IBA adjusts price in small increments, and the participants try to match their order in real time.
Reaching for Equilibrium: When buying and selling volumes match, within a tolerance imbalance of 10,000 oz, the auction concludes at the price becomes LBMA Gold Price. For example, Buy Volumes: 3,10,000oz and Sell Volumes: 3,003,000oz. Imbalance: 7000, which is within 10,000 hence price is fixed. If the imbalance is more than 10,000oz then the auction is held for another round.

Safe to assume that the same process is held for PM Fix as well.

Trading Process for Gold AM/PM Fixing

Client Order Placement Clients interested in placing orders in AM/PM Fix prices can do so by reaching out to our Dealing Room:
+971 4 356 2888.
Order Timings
(Winter Timings)		 AM Fix Time — 13:30 (order placing time – Until 13:00).
PM Fix Time — 18:00 (order placing time – Until 17:30).

No orders received after order placing times will be accepted.

Above mentioned are as per Dubai Standard Time.
Symbol The trading symbol for Gold Fixing is 'GOLD.Fix'.
Post-Trade Handling After the trade is executed, the 'GOLD.Fix' symbol behaves like a regular Gold Cash product. The client can close this transaction through the trading platform whenever he wishes.
Commission Structure The commission structure for Gold AM/PM Fixing will remain the same as per Gold Cash.
Margins The margin rate for the GOLD.Fix product is %3.

AM Fix vs PM Fix – What’s the Difference

Even though the processes behind determining the LBMA Gold Price AM and LBMA Gold Price PM would be the same, there exist a bunch of fundamental differences that influence buying and selling interests among other reasons. Below is a table to comprehend these differences effectively. Please note the below timings are as per UAE standard.

LBMA Gold Price to AED/kg

Basis AM Fix PM Fix
Timing 13:30 — Speculates Market conditions in early trading hours. 18:00 — Reflects global trading activity closer to US Market hours.
Market Coverage Captures European and Asian Market Activity Includes US Market activity and inputs.
Price Differences More stable and reflective of early market sentiment Slightly more volatile due to higher participation and updated news/data from the afternoon.

LBMA Gold Price in UAE – Conversion & Impact

The LBMA Gold Price is typically published in USD/oz as a global trading benchmark. For consumption by investors, retailers, jewellers in the UAE, the LBMA Price Fix is converted into AED/kg, which is the acceptable currency for gold in regional markets such as Dubai Gold Souk and gold trading platforms.

LBMA Gold Price (USD/oz) USD/kg (x32.1507) AED/kg (@ 3.673)

Here’s how AED Conversion Impacts UAE Gold Traders

Price Setting:
Gold prices in Dubai’s local retail jewellery market are traded on an AED/kg scale, which is derived from the LBMA’s Price Fix. Any fluctuations in FX Rate or LBMA’s Price can impact prices in the retail market.

Investment Decisions:
Traders and Investors in the UAE use this price scale as the domestic standard benchmark in buying and selling of physical gold or Gold ETFs. It gives them an easy idea of profit or loss in their domestic currency.

FAQs about Gold AM/PM Fixing

The LBMA Gold Price is determined twice a day, firstly at 13:30, and later at 18:00 PM, (UAE Time).

The Gold AM/PM Price Fix is aected by buying and selling interests of clients of major financial institutions such as Morgan Stanley, HSBC, JP Morgan etc. These are based on client demand, market sentiment and internal positions.

Retailers generally cannot purchase gold at the LBMA fix price directly. For purchasing purposes, these prices can be accessible only for wholesalers and large institutional transactions. Individuals would need to buy millions of dollars’ worth of gold to access this price

What one can do instead, is track the price of Gold using the same reference, and purchase ETFs and Futures. One can also purchase gold from reliable dealers who price their products close to the fix

The LBMA Gold Price is determined twice a day, firstly at 13:30, and later at 18:00 PM, (UAE Time)

Ready to Invest?

Explore a new trading experience with
Century Trader App

OPEN LIVE ACCOUNT TRY FREE DEMO

Losses can exceed your deposits

Ready to Invest?

Explore a new trading experience with
Century Trader App

OPEN LIVE ACCOUNT TRY FREE DEMO

Losses can exceed your deposits