Gold Drops 3.3% to Trade Around $4590 per Troy Ounce on Thursday

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On Thursday, gold (XAU/USD) fell by 3.3%, trading around $4,590 per troy ounce (31.1 grams).

Platinum (XPT/USD) also dropped by 3.4% on Thursday, trading at $1,900 per ounce.

The main trading hubs 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. LBMA (London): The OTC trading center where the majority of physical metal exchanges occur through major banks and dealers, setting benchmark prices (fixing).

2. COMEX (New York): The primary futures and options trading platform for precious metals, setting reference 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 provides an average daily turnover of around $50-70 billion USD;

- The OTC segment shows even larger volumes—approximately $60-80 billion USD per day.

This overview was presented by Alexey Grishchenko, Ph.D., Professor of the Department of Operational and Sectoral Management at the Faculty of "Higher School of Management" of the Financial University under the Government of the Russian Federation.