Gold rises 0.7% to trade near $4625 per troy ounce on Thursday

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On Thursday, gold (XAU/USD) is up by 0.7%, trading around $4,625 per troy ounce (31.1 grams).

Platinum (XPT/USD) is also gaining 1.3% on Thursday, priced at $2,141 per ounce.

The major 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 the majority of physical metal exchanges occur through large banks and dealers, setting benchmark prices (fixing).

2. COMEX (New York): The primary platform for trading futures and options on precious metals, establishing the 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 generates 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 Operational and Sectoral Management at the Higher School of Management, Financial University under the Government of the Russian Federation.