Gold Dips 0.5% in Precious Metals Market

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In the global precious metals market on Wednesday, gold (XAU/USD) fell by 0.5% and was trading at $4,576 per troy ounce (31.1 grams).

Platinum on the spot market (XPT/USD) dropped by 0.4%, trading at $1,934 per troy ounce (31.1 grams).

The main trading hubs for precious metals are concentrated in 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 market hub where physical metals are primarily exchanged through major banks and dealers, setting benchmark prices (fixing).

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

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

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

- Futures trading ensures 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, Doctor of Economics, Professor at the Department of Operational and Sectoral Management of the Faculty of "Higher School of Management" at the Financial University under the Government of the Russian Federation.