Gold Dips 1.3% to Trade Near $4450 per Troy Ounce on Thursday

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On Thursday, gold (XAU/USD) dropped by 1.3%, trading around $4,450 per troy ounce (31.1 grams).

Platinum (XPT/USD) also fell by 2% on Thursday, with its price standing at $1,890 per ounce.

The main 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 OTC market where major banks and dealers conduct the bulk of physical metal exchanges, setting benchmark prices (fixing).

2. COMEX (New York): The primary platform for trading futures and options on precious metals, establishing benchmark 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 demonstrates even larger volumes, with approximately $60-80 billion traded daily.

This overview was 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.