Gold Edges Up 0.1% to Trade at $5182 on Wednesday

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On Wednesday, gold (XAU/USD) is up 0.1% and trading at $5,182 per troy ounce (31.1 grams).

Platinum on the spot market (XPT/USD) is down 1.2%, trading at $2,176 per troy ounce (31.1 grams).

The main trading venues for precious metals are concentrated in the London Over-the-Counter 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 market where major banks and dealers trade physical metals, setting benchmark prices (fixing);

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

3. SGE (Shanghai): The key Asian center, 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 demonstrates 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, Ph.D., professor at the Department of Operational and Sectoral Management at the Higher School of Management, Financial University under the Government of the Russian Federation.