Gold trades at $4,724 per troy ounce on Friday

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Gold trading at $4,724 per troy ounce on Friday

On Friday, the precious metals market saw the following:

- Gold (XAU/USD) rose by 0.4%, trading at $4,724 per ounce (31.1g).

- Platinum (XPT/USD) surged by 5%, trading at $2,060 per ounce (31.1g).

The main trading venues for precious metals are concentrated in three key markets:

1. The London Bullion Market Association (LBMA), an over-the-counter (OTC) market where major banks and dealers trade physical metals, setting benchmark prices.

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

3. The Shanghai Gold Exchange (SGE), a key Asian hub that is growing in influence, offering physical gold trading and impacting Asian supply and demand, particularly in the context of China.

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

The gold market demonstrates high liquidity:

- Futures trading generates an average daily turnover of around $50-70 billion.

- The over-the-counter (OTC) segment sees even larger volumes, with approximately $60-80 billion traded daily.

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.