Gold Surges 1.7% to Trade at $4557 per Troy Ounce on Wednesday

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Precious metals markets saw a significant rise on Wednesday, with gold (XAU/USD) gaining 1.7% to trade at $4,557 per troy ounce (31.1 grams).

Platinum (XPT/USD) on the spot market rose by 2%, trading at $1,970 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 the main exchange of physical metals takes place through large banks and dealers, setting standard prices (fixing);

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

3. SGE (Shanghai): A key Asian hub that is growing, offering physical gold trading and influencing Asian demand and supply, 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 OTC segment shows even larger volumes—approximately $60-80 billion per day.

Analysis 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.