Gold Rises 1% to Trade at $5145 per Troy Ounce on Wednesday

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Precious metals saw gains on Wednesday, with gold (XAU/USD) rising by 1% to trade at $5,145 per troy ounce (31.1 grams).

Platinum (XPT/USD) on the spot market climbed 1.8%, trading at $2,123 per troy ounce (31.1 grams).

The major 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. LBMA (London): The center for OTC trading, where major banks and dealers exchange physical metals, setting benchmark prices (fixing).

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

3. SGE (Shanghai): The key Asian hub, growing in influence by offering physical gold trading and impacting Asian supply and demand, particularly in the context of China.

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

- Futures trading typically generates a 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, Ph.D., professor of operational and industry management at the Higher School of Management of the Financial University under the Government of the Russian Federation.