Did the New Fix, Fix the Fix? An Intraday Exploration of the Precious Metal Fixing
26 Pages Posted: 9 Sep 2015 Last revised: 11 Feb 2018
Date Written: September 8, 2015
We study the impact and changes to the precious metal Fixing structure that took place in 2014 and 2015 for Gold, Silver, Palladium and Platinum. We find that there is negative price pressure going into the auctions, for all precious metals, outside active US trading hours regardless of Fixing structure. For active US trading hours, there is no obvious, observable persistent price pressures.
We find no conclusive signs that the price is manipulated into the Fix given public price data. Nor do we find any significant change in the price and volume structure. Given the higher transparency and more Fix participants we would have expected changes if the market structure truly changed. Rather, we observe similar activities around settlement times.
Keywords: Precious Metals, Fixing, Futures Trading, Intraday behavior, Commodities, Gold, Silver, Platinum, Palladium
JEL Classification: G00
Suggested Citation: Suggested Citation