Gold Dips 0.3% to Trade Near $4723 per Troy Ounce on Thursday

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On Thursday, gold (XAU/USD) fell by 0.3%, trading around $4,723 per troy ounce (31.1 grams).

Platinum (XPT/USD), on the other hand, rose by 2% on Thursday, with its price standing at $2,010 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 hub where major banks and dealers exchange physical metals, setting benchmark prices (fixing).

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

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

It is worth noting that the gold market exhibits high liquidity:

- Futures trading generates an average daily turnover of around $50-70 billion USD.

- The OTC segment demonstrates 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.