The London Bullion Market Association

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London is home to the international benchmark prices for Gold and Silver.

The gold and silver price auctions take place in London on a daily basis. The LBMA is responsible for the GOFO benchmark prices. All of these prices are globally regarded as the international benchmark for pricing of a variety of bullion transactions and products.

  • The Gold price auction takes place twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in US dollars per fine troy ounce. The prices are also available in £ and €.
  • The LBMA Silver price auction is operated by CME and administered by Thomson Reuters and takes place daily at 12:00 noon London time. The price is expressed in $ per troy ounce. Reference prices are also available in £ and €. Disclaimer
  • Gold Forward Rate Offered Rate or GOFO for short, is set daily at 11:00 expressed as a % in five tenors ranging between 1 month to 1 year.

Overview - Gold and Silver Prices

The guiding principle behind the prices for gold and silver is that all business, whether for large or small amounts, is conducted solely on the basis of a single published price. Orders can be changed throughout the proceedings, as the price moves higher or lower, until such time as buyers' and sellers' orders are matched and the price is in equilibrium. Clients around the world wanting to buy or sell gold and silver may all do so at this price. These fully transparent benchmarks are globally accepted as the basis for pricing a variety of transactions, including many financial instruments. They may also be used as a basis for cash-settled swap and option transactions. Orders executed at the fixings are conducted as principal-to-principal transactions between the client and the dealer through whom the order is placed.

Gold prices

The Gold price in London is set twice a day by telephone, at 10:30 and 15:00 by four LBMA Market Makers who comprise the London Gold Market Fixing Limited (LGMFL). They are: the Bank of Nova Scotia–ScotiaMocatta, Barclays Bank Plc, HSBC Bank USA NA and Societe Generale. The chairmanship of the Gold Fixing rotates annually amongst them.

At the start of each fixing, the Chairman announces an opening price to the other members, who relay it to their dealing rooms where customers can then declare their interest as buyers or sellers. Provided there are both buyers and sellers at the price, members are then asked to state the number of ounces they wish to trade. The members then net all orders and inform their representative at the Fixing of this net interest. The gold price is then adjusted up and down until demand and supply is matched, at which point the price is declared "Fixed" and all business is conducted on the basis of that price.

If at the opening price there are only buyers or only sellers, or if the numbers of ounces to be bought or sold does not balance, then the price is adjusted up and down until demand and supply is matched. The Chairman then announces that the price is "fixed". It should be noted that the price is only set or agreed if the buy amount and the sell amount are within 300,000 ozs of each other. This procedure will last as long as it is necessary to establish a price that satisfies both buyers and sellers. Clients can place orders in advance of the "Fix" and trim or adjust their orders based on the price changes at any time during the process, until such time as the price is agreed.

Prices for gold are published immediately after the price is agreed by the various news agencies and on our website. Select the accompanying Chart and Table tabs to access both current and historical gold prices. For more information on the Gold fixings, including viewing the time stamps for the daily prices, visit the London Gold Fixing Company website.

Silver prices

The LBMA Silver Price is determined via an electronic auction based solution which is based on transactions and is auditable. Three price participants have been accredited to contribute to the LBMA Silver Price from the 15th August as follows: HSBC Bank USA NA, Mitsui & Co Precious Metals Inc and The Bank of Nova Scotia - ScotiaMocatta. The LBMA Silver Price is set in a series of auction rounds with each round lasting 30 seconds. The auction begins at 12:00 and participants input their buy volume and sell volume orders in lakhs (100,000 ounces) or quarter lakhs (25,000 ounces). The initial price at the start of the process is likely to be close to the spot price. In the first round the system algorithm will attempt to match buy and sell orders within the permitted tolerance level (3 lakhs). If the buy and sell orders are out of tolerance, the auction price will change and the auction will restart. The process will continue until the buy and sell volumes are in tolerance and the equilibrium price is set. Disclaimer

Gold Forward Offered Rate (GOFO)

The Gold Forward Offered Rate is an international benchmark rate at which dealers will lend gold on a swap basis against US dollars, providing the foundation for the pricing of gold swaps, forwards and leases.

The LBMA acts as the administrator for GOFO and has controls in place to ensure IOSCO compliance.  The Code of Conduct for Participating Members governs matters such as general conduct standards, governance arrangements, conflict management, submission methodology, complaints and whistleblowing and record keeping. There are also Best Practice Submission Guidelines for Members which gives Forward Market Makers high minimum standard in terms of internal controls.

The prices submitted are dealable between the Forward Market Makers until 11:00 am. At 11:00am, the mean is calculated, based on the bid rates submitted, for each tenor by discarding the highest and lowest quotations and averaging the remaining rates. The rates provide a benchmark dataset which is used as the basis for some long-term finance and loan agreements as well as for the settlement of of gold Interest Rate Swaps and Forward Rate Agreements. The data is published by the LBMA and is available by following the link in the Useful Links section on the right hand side of the page. To show derived gold lease rates, the GOFO means are subtracted from the corresponding values of the US LIBOR (London Interbank Offer Rates). These rates are also available on our website.

The seven LBMA Forward Market Makers who contribute to GOFO are as follows: The Bank of Nova Scotia-Scotia Mocatta, Barclays Bank plc, HSBC Bank, Goldman Sachs, JPM Chase Bank, Societe Generale and UBS AG.

Market convention is for the interest payable on loans of gold to be calculated in terms of ounces of metal. These are then converted to US dollars based on a US dollar price for the metal agreed at the time of the lease transaction. The interest basis for gold and silver is a 360-day year.

Interest therefore equals: B x (R/100) x (d/360) x P

Where B is ounces of bullion, R is the lease rate, D is the number of days and P is the Price of gold or silver agreed for calculation of interest. Markets Outright Forwards and Swaps Market convention is for forward prices in gold and silver to be quoted in interest rate terms on the basis at which a dealer will borrow or lend metal on the swap.

A dealer therefore may quote three months forward at say 0.40 % to 0.50 %.

This means that he will lend on the swap (i.e. sell spot and buy forward), at 0.40 % per annum over the spot price for the forward leg, or borrow on the swap (buy spot and sell forward), charging 0.50 % per annum over the spot for the forward.

In this scenario, were the dealer to be asked to lend on the swap at 0.40 % and the spot price were say $1,365 to 1,365.50, the dealer would, in accordance with market practice, base the deal at the middle of the spread. He would therefore sell the spot at $1,365.25, and buy the forward at a premium calculated as:

$1,365.25 x 90/360 x 0.4/100 = $1.37.

The forward price therefore equals: $1,365.25 + $1.37 = $1,366.62.

LBMA/LME End of Day Forward Curve data

In addition to the Gold Forward Rates since September 2009, the LBMA Forward Market Makers have also collated three data sets which are used for valuing end-of-day positions. This data consists of the LBMA Gold Forward Curve, the LBMA Silver Forward Curve and the LBMA Gold IRS curve.

These data sets provide a complete set of tenors from some of the largest participants in the London Bullion Market and complement the Gold Forward Rate data set. This data is used as a reliable basis for valuing end-of-day positions. Access to valuation points, including spot, out to: 10 years forward for gold; 3 years forward for silver; 12 months to 10 years forward for Gold IRS.

The LME act under licence from the LBMA to collate, process and publish the data once daily at 17:00 UK Time. The full data set is available from $15.00 per user per month and can be accessed from Thomson Reuters (Gold RIC "0#XAU=LBMA, Silver RIC "0#XAG=LBMA", Gold IRS RIC "0#AUI=LBMA") and Bloomberg (page code "LBMA") or via the LME's list of other data vendors distributing the data.

*Fixing data reproduced by kind permission of the London Gold Market Fixing Ltd . Please refer to its website to see licensing requirements for the commercial use of the data as well as the time stamps. Warning: Neither the BBA LIBOR Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, nor the LBMA can be held responsible for any irregularity or inaccuracy of BBA LIBOR (for more details, see "Prices Explained"). 

LBMA Silver Price (“Benchmark”) is owned by The London Bullion Market Association (“LBMA”), calculated by CME Benchmark Europe Ltd. (“CMEBEL”) and administered by Thomson Reuters Benchmark Services Ltd. (“TRBSL”). None of LBMA, CMEBEL, TRBSL, their group companies, nor any of their or their group companies’ respective directors, officers, employees or agents (collectively the “Disclaiming Parties”) shall be liable in respect of the accuracy or the completeness of the Benchmark or the market data related thereto (“Market Data”) and none of the disclaiming parties shall have any liability for any errors, omissions, delays or interruptions in providing the Benchmark or market data. No disclaiming party makes any warranty, express or implied, as to results to be obtained by use of the Benchmark or Market Data. The Benchmark and Market Data is provided “as is” and no disclaiming party makes any express or implied warranties, conditions, guarantees or representations, with respect to the Benchmark or the Market Data and the Disclaiming Parties expressly disclaim all warranties, of merchantability or fitness for a particular purpose or use, satisfactory quality or non-infringement with respect to the Benchmark or Market Data or any data related thereto. Without limiting any of the foregoing, in no event shall any disclaiming party have any liability for any loss of profit, loss of or anticipated loss of revenue, loss of use, business interruption, loss of use of any equipment, loss of any contract or other business opportunity or goodwill or indirect, punitive, special, incidental or consequential damages, even if advised of the possibility of such loss or whether such loss otherwise would have been foreseen. This limitation of liability shall not exclude or restrict the liability of the Disclaiming Parties or any other person: (a) in respect of the fraud, bad faith, willful default or gross negligence of the applicable disclaiming party; (b) in respect of personal injury or death resulting from negligence; or (c) otherwise to the extent it cannot be excluded or restricted in accordance with applicable law. The exclusions and limitations of liability contained herein shall apply whether: (a) a claim arises in contract, tort, negligence, strict liability, breach of statutory duty, contribution or otherwise; or (b) a claim is brought directly or as a third party claim. No Advice. The Benchmark and Market Data are provided for general information purposes only and provision of the Benchmark and Market Data does not constitute legal, financial or other professional advice. No Disclaiming Party shall be responsible for any costs or damages resulting from your use or reliance of the Benchmark or Market Data, (or anybody accessing the Benchmark or Market Data via you), including but not limited to decisions relating to the sale and purchase of instruments or legal, compliance and/or risk management decisions. You agree that you access the content at your own risk in these respects.