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The government of England has made the Bank of England their official banker, since it handles and manages their account. Not only does it look after foriegn accounts, but it is also responsible for handling the gold reserves of the country. The issue of bank notes with the gold introduced with the Bank Charter Act in 1844, made the Bank of England the sole provider for bank notes. All the banks in England are associated with the Bank of England. It also acts as an emergency loan provider.

It is the supply and demand of gold and other goods, which distinguishes their price. However, gold is a non consumable item unlike the rest of the goods, since it always sustains its form. Thus, this feature of gold creates further variation in its price, and it is usually sold off at the peak of its price.

By the end of 2004, many government organisations and central banks were said to have kept about 19% of the mined gold with them. Central banks, and the IMF are involved strongly in determining the price of gold. In 1999, out of the central banks in Europe, the Swiss National Bank, and the Bank of England were present in the list of top gold sellers.

The London gold marketplace has a clearing mechanism, these are five banks that are interconnected. These are The Bank of Nova Scotia, Deutsche Bank AG, HSBC Bank, JP Morgan Chase Bank, and UBS. It is the job of the clearer, to take care of the gold that is shipped from all over the world. This gold will then go to jewellery manufacturers. Clearers also have customers who wish to buy the gold themselves.

The gold fix is the most important attribute of the Over the Counter Trading. It is controlled by the major market makers, which includes four names: Deutsche Bank AG, Society Gnrale, The Bank of Nova Scotia, and the HSBC Bank USA London Branch.

A major concern about Over the Counter Trading is the gold fix. The gold fix is dictated by four major market makers. These are The Bank of Nova Scotia, Deutsche Bank AG, HSBC Bank USA London Branch, and Society General.

This sets the price of gold at a fixed rate, which makes it possible for gold traders to trade at fair market prices. Twice a day, morning and afternoon, members of the gold fix in London conduct an auction. This auction aims at finding the price where the number of buying orders match with the number of selling orders. This price is published widely in newspaper, and posted on the internet where guidance is provided to those who are in the buying or selling of gold at that very instant. This is a widely used method that is used by the traders to fix the price of gold for physical gold transactions.