Gold prices plunge by 7% in precious metals market

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Gold (XAU/USD) prices have plunged by 7%, with the current quote standing at $4,200 per troy ounce (31.1 grams).

Platinum (XPT/USD) is also down by 7%, trading at $1,720 per troy ounce (31.1 grams).

The major trading platforms for precious metals are concentrated in 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. LBMA (London): The center for over-the-counter (OTC) trading, where major banks and dealers exchange physical metals, setting benchmark prices (fixing);

2. COMEX (New York): The primary platform 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 averages a daily turnover of around $50-70 billion;

- The over-the-counter (OTC) segment sees 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 Faculty of "Higher School of Management" at the Financial University under the Government of the Russian Federation.