Gold Dips 0.5% to Trade Near $4720 per Troy Ounce on Thursday

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On Thursday, gold (XAU/USD) is down by 0.5%, trading around $4,720 per troy ounce (31.1 grams).

Platinum (XPT/USD) is also falling by 1.5% on Thursday, with its price at $2,050 per ounce.

The main trading hubs for precious metals are focused on the London Over-the-Counter 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 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 platform for trading futures and options on precious metals, setting the standard 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 over-the-counter segment (OTC) shows even larger volumes—approximately $60-80 billion per day.

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