Gold prices rise 0.6% to around $5200 per troy ounce on Thursday

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On Thursday, gold (XAU/USD) is up by 0.6%, trading around $5,200 per troy ounce (31.1 grams).

Platinum (XPT/USD) is also rising by 0.8% on Thursday, with its price at $2,300 per ounce.

The main 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 OTC hub where physical metals are primarily exchanged through major banks and dealers, setting benchmark prices (fixing).

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

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

It is worth noting that the gold market exhibits high liquidity:

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

- The OTC segment (OTC) shows even larger volumes—approximately $60-80 billion per day.

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