Precious Metals Market Overview

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Gold is trading at $4,955 per troy ounce on Friday.

On Friday, the precious metals market shows the following dynamics:

- Gold (XAU/USD) is up by 0.4%, trading at $4,955 per ounce (31.1 grams).

- Platinum (XPT/USD) is also rising by 0.8%, trading at $2,700 per ounce (31.1 grams).

The main trading venues for precious metals are concentrated in the London Over-the-Counter market (LBMA), the U.S. futures market (COMEX), and the Shanghai Gold Exchange (SGE).

These three centers account for over 90% of global trading volume:

1. The OTC market, where physical metals are primarily exchanged through major banks and dealers, setting benchmark prices (fixing) – LBMA (London);

2. The main platform for trading futures and options on precious metals, setting the benchmark prices in the U.S. – COMEX (New York);

3. The key Asian center, which is growing, offering physical gold trading and influencing Asian supply and demand, especially in the context of China – SGE (Shanghai).

The gold market demonstrates high liquidity:

- Futures trading provides an average daily turnover of around $50-70 billion;

- The OTC segment shows even larger volumes – approximately $60-80 billion per day.

This overview was presented by Yulia Grishchenko, a member of the Expert Council on Listing at the Moscow Exchange, Ph.D. in Economics, and Head of the Department of Financial and Investment Management at the Faculty of "Higher School of Management" of the Financial University under the Government of the Russian Federation.