Gold Dips 0.7% to Trade at $4807 on Global Precious Metals Market

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In the global precious metals market on Wednesday, gold (XAU/USD) is down 0.7% and trading at $4,807 per troy ounce (31.1 grams).

Platinum on the spot market (XPT/USD) is up 0.3%, trading at $2,110 per troy ounce (31.1 grams).

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 center for OTC trading, where the majority of physical metal exchanges occur through major banks and dealers, setting benchmark 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): The key Asian hub, which is growing 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 provides an average daily turnover of around $50-70 billion;

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

This overview was presented by Alexey Grishchenko, Doctor of Economics, Professor at 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.