Gold Rises 1.2% to Trade at $4940 per Troy Ounce on Wednesday

© ООО Региональные новости

Precious metals markets saw gains on Wednesday, with gold (XAU/USD) rising 1.2% to trade at $4,940 per troy ounce (31.1 grams).

Platinum (XPT/USD) on the spot market climbed 2.2%, reaching $2,050 per troy ounce (31.1 grams).

Major trading platforms for precious metals are concentrated in three key hubs:

1. LBMA (London): The center for over-the-counter (OTC) trading, where major banks and dealers facilitate the exchange of physical metals, setting benchmark prices (fixing).

2. COMEX (New York): The primary market for futures and options contracts on precious metals, establishing reference prices in the U.S.

3. SGE (Shanghai): The leading Asian hub, growing in influence as it offers physical gold trading and impacts Asian supply and demand, particularly in the context of China.

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

The gold market exhibits high liquidity:

- Futures trading generates an average daily turnover of around $50-70 billion.

- The OTC segment sees even larger volumes, with approximately $60-80 billion traded daily.

This overview was presented by Alexey Grishchenko, Ph.D., Professor of Operational and Sectoral Management at the Faculty of "Higher School of Management" of the Financial University under the Government of the Russian Federation.