Gold Drops 2% to Trade at $4900 on Global Precious Metals Market on Tuesday

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On Tuesday, the global precious metals market saw a decline of 2% in gold prices (XAU/USD), with gold trading at $4,900 per troy ounce (31.1 grams).

Platinum prices (XPT/USD) on the spot market fell by 2.2% and are currently trading at $2,000 per troy ounce (31.1 grams).

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

2. The primary futures and options trading platform for precious metals, setting U.S. benchmark prices - COMEX (New York);

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

The gold market exhibits high liquidity:

- Futures trading generates 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 Alexey Grishchenko, Doctor of Economics, Professor at the Department of Operational and Sectoral Management of the "Higher School of Management" Faculty at the Financial University under the Government of the Russian Federation.