LBMA Gold Price Explained

How the Twice-Daily Gold Price Auction Works

Twice on every London business day, the LBMA gold price is decided via an electronic auction. This happens at 10:30 and again at 15:00, both on London time. The result creates the key reference price that major gold trades in the London market will look to. The LBMA name stands for the London Bullion Market Association.

Here's how it works: Each participant submits their buy or sell order at a price proposed by the auction system. The price keeps moving until the volumes to buy and sell reach an exact match. When that balance happens, whatever price that is becomes the benchmark. You'll sometimes hear people refer to that final number as the AM or PM price, depending on the auction's timing. The process is managed by an independent administrator and follows publicly available rules.

If you want more detail on London bullion's trading day, take a look at our guide covering gold market trading hours.

From the London Gold Fix to an Electronic Auction

For nearly 100 years, the gold price got set by a handful of banks speaking over the phone. This arrangement was called the London Gold Fix, and the goal was to match buying to selling. In March 2015, the process changed. The manual system ended and a digital auction replaced it, but the fixed London name and time slots remain. The rules are now published and a formal administrator oversees everything.

Since the benchmark only updates at set points, it doesn't reflect every price movement during the day. That’s one reason why many traders watch continuously updating prices alongside the benchmark.

Who uses the LBMA gold price

You'll find the LBMA gold price used in a range of places: it's a standard in contracts, official valuations, and even tracks investments such as gold-backed funds. Bulk bullion dealers, some mints, and major refiners often price wholesale business directly from it. Besides gold, the LBMA also releases benchmark prices for silver, platinum, and palladium at different scheduled times.

If you're buying from a dealer for yourself, they'll usually add a premium to the LBMA price. That's how they cover their costs and profit, so it won't match the exact benchmark. Gold markets move quickly. Prices and premiums can shift, and as with any investment you might make or sell, you could experience a loss. To see the daily market price, use our gold price page.

Frequently asked questions