AM/PM Fixing for Gold and Silver
AM and PM fixing refer to the process of setting benchmark prices for gold and silver twice daily. These benchmarks serve as reference prices for the precious metals market, including traders, investors, and financial institutions.
Key Features
Transparency
Fixing prices are determined through a collaborative process to reflect supply and demand.
Global Standard
Used across the world for trading, settlement, and valuation purposes.
Liquidity Guidance
Often used as a liquidity benchmark for large-scale transactions.
The Fixing Process
Gold
-
AM Fixing
Conducted at 10:30 AM (London time)/ 14:30 Dubai Time. -
PM Fixing
Conducted at 3:00 PM (London time)/ 19:00 Dubai Time. -
Administrator
The process is managed by the London Bullion Market Association (LBMA). -
Participants
Banks, financial institutions, and authorized dealers participate to set the price through an auction-style mechanism.
Silver
-
AM Fixing
Occurs at 12:00 PM (London time). -
PM Fixing
Not typically established for silver; daily fixing is usually singular. -
Administrator
Overseen by the LBMA and other market entities like the CME Group. -
Participants
Similar to gold, with fewer institutions involved.
Importance of Fixing Prices
Pricing Basis
Establishes a global standard for contracts and physical deliveries.
Portfolio Valuation
Used by asset managers to mark portfolios to market.
Hedging and Derivatives
Central for pricing options, futures, and other derivatives.
Regulation and Compliance
Provides a transparent price for auditing and reporting purposes.
Criticisms and Reforms
Manipulation Risks
Historical allegations of collusion among participants.
Reform Efforts
1_Enhanced transparency through electronic platforms.
3_Increased oversight by regulators.
2_Inclusion of a broader range of participants to avoid concentration of power.
Conclusion
The AM/PM fixing process for gold and silver remains a cornerstone of the global precious metals market. While reforms continue to address challenges, these benchmarks play an essential role in ensuring liquidity, transparency, and consistency in trading and valuation worldwide.
Trading Process for Gold & Silver AM/PM Fixing
Client Order Placement
Clients interested in placing orders in AM/PM Fix prices can do so by reaching out to us at ts@godocm.com.
Order Timings
AM Fix Time – 14:30 (order placing time - Until 13:30).
PM Fix Time – 19:00 (order placing time - Until 18:00).
No orders received after order placing times will be accepted.
Above mentioned are as per Dubai Standard Time.
Trade Execution
Once the fixed prices are updated, trade will be booked in the client's account. During this time, the client will not be able to access the Trading Platform.
Symbol
The trading symbol for Gold Fixing is 'XAUUSD.Fix.' and for Silver Fixing its XAGUSD.Fix
Post-Trade Handling
After the trade is executed, the 'XAUUSD.Fix' symbol behaves like a regular Gold Cash product. Same for XAGUSD.Fix. The client can close this transaction through the trading platform whenever he wishes.
Commission Structure
We charge 20cents over and above the Fix rates.
Margins
The margin rate for the XAUUSD.Fix product is 1%.
Margin for XAGUSD.Fix is 5%
If you have additional inquiries or need further information, please don't hesitate to contact the Client Services team, and we will be happy to assist.
