Gold Surges 5% to Trade at $4888 on Global Metals Market on Tuesday

© ООО Региональные новости

On Tuesday, the global precious metals market saw gold (XAU/USD) rising by 5% and trading at $4,888 per troy ounce (31.1 grams).

Platinum on the spot market (XPT/USD) increased by 4% and was quoted at $2,210 per troy ounce (31.1 grams).

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

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

1. The OTC trading center, where the majority of physical metal exchanges occur through major banks and dealers, setting benchmark prices (fixing) - LBMA (London);

2. The primary platform for trading futures and options on precious metals, setting the benchmark prices in the US - COMEX (New York);

3. The key Asian center, which is growing and offering physical gold trading, influencing Asian demand and supply, 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.