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Gold: Trading

The 400-ounce bar behind London's bullion market

The 400-ounce bar behind London's bullion market What this tab covers How and where it is bought and sold: who buys and sells, exchanges and benchmarks, contract types, the big trading houses and how prices are discovered.

The core market is London's over-the-counter bullion market, overseen by the LBMA. The deliverable unit is a 400-ounce bar of at least 99.5% purity held in approved vaults, usually traded unallocated (Geman, pdf p. 184). A daily auction sets the benchmark. COMEX futures in New York, the Shanghai Gold Exchange and India's MCX add price discovery. Gold also has an interest-rate market: central banks lease gold to bullion banks, which lend it to miners or sell it forward (Geman, pdf pp. 199-200). Heavy producer forward selling in the 1990s added to the price slump (Humphreys, pdf p. 40).

Where it is bought (buyers)

  • Jewellers and households in India, China, the Gulf and Turkey buy kilobars and 100 g bars through banks and nominated agencies
  • Central banks buy 400-oz London Good Delivery bars, often from bullion banks or directly from domestic miners
  • ETFs and investors buy through LBMA bullion banks, COMEX futures and the Shanghai Gold Exchange
  • India's qualified jewellers can import via IIBX in GIFT City

Where it is sold (sellers)

  • Miners sell dore to refiners (Switzerland, Dubai, South Africa's Rand Refinery, India's MMTC-PAMP) under refining agreements
  • Refiners sell bars to bullion banks and wholesalers in London, Zurich, Dubai, Hong Kong and Singapore
  • Households sell old jewellery back to jewellers, about 28% of 2025 supply worldwide

Exchanges and benchmarks

VenueContractNotes
LBMA (London OTC market)Loco London spot and forwards in 400-oz Good Delivery bars, at least 99.5% fineLargest market; LBMA Gold Price auction twice daily, run by ICE Benchmark Administration
COMEX (CME Group)Gold futures GC, 100 troy oz; micro 10 ozMain futures price-discovery venue
Shanghai Gold Exchange and SHFESGE Au99.99 spot (1 kg); SHFE gold futures 1 kgChina's physical market; Shanghai Gold Benchmark in yuan
MCX (India)Gold 1 kg; Gold Mini 100 g; Gold Guinea 8 g; Gold Petal 1 gRupee price includes import duty; most Indian hedging and speculation
IIBX (GIFT City, India)Gold 1 kg and 100 g bars (995 and 999 fineness), dollar-denominated spotIndia's international bullion exchange, launched 2022; qualified jewellers import through it

Contract types

  • Spot loco London, unallocated or allocated
  • Refining (tolling) agreements for dore
  • Gold leases and swaps between central banks and bullion banks
  • Futures and options (COMEX, MCX, SHFE)
  • Sovereign gold bonds and ETFs in India
  • Gold metal loans to jewellers in India

Top trading houses

  • JPMorgan
  • HSBC
  • UBS
  • ICBC Standard Bank
  • Valcambi
  • PAMP / MKS PAMP
  • Argor-Heraeus
  • Metalor
  • MMTC-PAMP

How prices are discovered

  • LBMA Gold Price (ICE Benchmark Administration) twice daily
  • COMEX front-month futures
  • Shanghai Gold Benchmark and the Shanghai premium
  • IBJA rates and MCX futures for rupee prices
  • Local premium or discount surveys (Reuters, WGC)