Gold prices fall 1% to trade at $5175 on global markets on Tuesday

© ООО Региональные новости

On Tuesday, gold (XAU/USD) is trading down by 1% at $5,175 per troy ounce (31.1 grams) on the global precious metals market.

Platinum (XPT/USD) on the spot market is down by 0.2% and is currently trading at $2,162 per troy ounce (31.1 grams).

The major trading hubs for precious metals are focused on the London over-the-counter market (LBMA), the American futures market (COMEX), and the Shanghai Gold Exchange (SGE).

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

1. The over-the-counter (OTC) trading center, where physical metals are primarily exchanged through major banks and dealers, setting benchmark prices (fixing) - LBMA (London);

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

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

The gold market shows high liquidity:

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

- The over-the-counter (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.