Gold Rises 1% to Trade at $4556 on Global Metals Market on Tuesday

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On Tuesday, gold (XAU/USD) is trading 1% higher at $4,556 per troy ounce (31.1 grams) on the global precious metals market.

Platinum (XPT/USD) on the spot market is up 0.6% and is trading at $1,912 per troy ounce (31.1 grams).

The main trading venues for precious metals are concentrated in the London Over-the-Counter (OTC) 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. The OTC trading center, where the majority of physical metal exchanges take place through major banks and dealers, setting standard prices (fixing) - LBMA (London);

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

3. The key Asian center, which is growing by offering physical gold trading and influencing Asian supply and demand, particularly in the context of China - SGE (Shanghai).

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, with around $60-80 billion per day.

This overview was presented by Alexey Grishchenko, Ph.D., 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.