Gold Continues Upsurge

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Gold trades at $5,280 per troy ounce.

On Wednesday, gold (XAU/USD) is up by 2% and trading at $5,280 per troy ounce (31.1 grams) of gold.

Platinum on the spot market (XPT/USD) is up by 1.4%, trading at $2,700 per troy ounce (31.1 grams) of platinum.

The major trading venues for precious metals are concentrated in the London Over-the-Counter (OTC) 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. LBMA (London): The center for OTC trading, where the main exchange of physical metals takes place through large banks and dealers, setting standard prices (fixing);

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

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

It is worth noting that 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 — about $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.