Gold Dips 3% Amid Precious Metals Market Correction on Tuesday

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On Tuesday, gold (XAU/USD) is experiencing a 3% correction and is trading at $4,544 per troy ounce (31.1 grams) of gold on the global precious metals market.

Platinum on the spot market (XPT/USD) is down 0.2% and is currently priced at $1,980 per troy ounce (31.1 grams) of platinum.

The main trading venues for precious metals are concentrated in the London Over-the-Counter (OTC) market (LBMA), the American futures market (COMEX), and the Shanghai Gold Exchange (SGE).

These three centers account for over 90% of global trading volume:

1. The OTC trading center, where the majority of physical metal exchanges occur through major banks and dealers, setting benchmark prices (fixing) – LBMA (London);

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

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

The gold market demonstrates 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, Ph.D., Professor at the Department of Operational and Sectoral Management of the "Higher School of Management" Faculty at the Financial University under the Government of the Russian Federation.