GOLD Londox Fix : How it works http://www.bloomberg.com/news/2013-...scrutiny-amid-knowledge-tied-to-eruption.html --------------------------------------- Gold Bars If there are more buyers than sellers, the starting price is raised and the process begins again. The talks continue until the buy and sell amounts are within 50 bars, or about 620 kilograms, of each other. The procedure is carried out twice a day, at 10:30 a.m. and 3 p.m. in London. Prices are set in dollars, pounds and euros. Similar gauges exist for silver, platinum and palladium. The traders relay shifts in supply and demand to clients during the calls and take fresh orders to buy or sell as the price changes, according to the website of London Gold Market Fixing, which publishes the results of the fix. Trading Surges At 3:01 p.m., after the start of the call, trading surged to 47.8 percent above the average for the 20-minute period preceding the start of the fix and remained 20 percent higher for the next six minutes, Caminschi and Heaney found. By comparison, trading was 8.7 percent higher than the average a minute after publication of the price. The results showed a similar pattern for the SPDR Gold Trust. âIntuitively, we expect volumes to spike following the introduction of information to the marketâ when the final result is published, Caminschi and Heaney wrote in âFixing a Leaky Fixing: Short-Term Market Reactions to the London P.M. Gold Price Fixing.â âWhat we observe in our analysis is a clustering of trades immediately following the fixing start.â The researchers also assessed how accurate movements in gold derivatives were in predicting the final fix. Between 2:59 p.m. and 3 p.m., the direction of futures contracts matched the direction of the fix about half the time. From 3:01 p.m., the success rate jumped to 69.9 percent, and within five minutes it had climbed to 80 percent, Caminschi and Heaney wrote. On days when the gold price per ounce moved by more than $3, gold futures successfully predicted the outcome in more than nine out of 10 occasions.
your cluttering the thread up with stuff that is unrelated.. please stop.. this is about crude oil.. NOT gold. thank you