LBMA Gold Price: London Benchmark Explained

What is the LBMA gold price

The LBMA gold price is a benchmark price for gold. It is set in US dollars per troy ounce by an electronic auction held in London on each business day.

"LBMA" stands for the London Bullion Market Association, the trade body of the London gold market. Many people still call the benchmark the "LBMA gold fixing" or "London gold fix", after the older telephone-based fixing that it replaced.

Formal definition

For experienced readers, these are the key terms:

Administrator: ICE Benchmark Administration (IBA) runs the auction and publishes the price. The LBMA owns the name.
Sessions: a morning auction and an afternoon auction. Each produces its own price, often written as "LBMA Gold Price AM" and "LBMA Gold Price PM".
Method: the administrator announces a price. Accredited direct participants enter how much they want to buy and sell at that price. If the buy and sell volumes do not match within a set tolerance, the price is adjusted and another round starts. When they balance, that price becomes the benchmark.
Currencies: the auction runs in US dollars. Prices in other currencies, such as pounds and euros, are published by converting the dollar result.
Unit and quality: the price refers to unallocated loco London gold. This means gold held in the London system that meets the market's good delivery standard.

Worked example (hypothetical)

A jewellery supplier's contract says: "Price per troy ounce = LBMA Gold Price PM on delivery day, plus a fixed premium."

On delivery day, the afternoon auction publishes a dollar price. Call it P.
The supplier adds the agreed premium to P.
The total is converted to rupees at the exchange rate named in the contract.

Gold can move a lot during the day. Neither side can choose a favourable moment, because the contract points to a single published number.

Where you see the term

Contracts: physical gold supply contracts, lease rates and some settlement terms refer to the AM or PM price.
Fund and central bank reports: gold holdings are often valued "at the LBMA Gold Price PM" at period end.
News: reports may say gold "fixed at" a level in London. This refers to the auction result, not a live quote.
Trading platforms: a platform shows a live, continuously changing spot quote, such as XAUUSD. That quote is not the benchmark. See XAUUSD spread for how a broker's live gold quote is built.

Edge cases

No auction, no price: on UK bank holidays and other non-business days, no benchmark is published. Contracts usually say which earlier or later price applies instead.
Benchmark versus tradable price: the benchmark is a snapshot at the moment the auction ends. Spot gold can trade above or below it minutes later.
Data use: live and commercial use of the benchmark generally needs a licence from the administrator. Free public sources may show it with a delay.
Rupee prices: local gold rates in Pakistan add the exchange rate, local premiums and purity differences, so they will not equal a simple conversion of the benchmark.

Leveraged gold CFDs follow the live price, not the benchmark. They can lose money fast.

Frequent questions

What is the LBMA gold price in simple words?

It is the gold price in US dollars per troy ounce, set by a daily auction in London. Contracts, funds and reports use it as a reference.

Is the LBMA gold fixing the same as the LBMA gold price?

In everyday use, yes. "Fixing" is the older name. The current method is an electronic auction run by IBA.

Why does the price on my platform differ from the LBMA gold price?

A platform shows a live spot quote that changes all the time. The benchmark is a single auction result, so the two will usually differ.

Can I trade at the LBMA gold price?

Only accredited participants take part in the auction. Others can agree in a contract to buy or sell at the published price, but a live trade on a platform uses the platform's quote.

Is the LBMA gold price a forecast?

No. It records where the auction balanced. It says nothing about where gold will go next.