Gold Trades at $4,525 per Troy Ounce on Friday

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Gold prices dip to $4,525 per troy ounce on Friday

On Friday, the precious metals market saw the following changes:

- Gold (XAU/USD) dropped by 0.4%, trading at $4,525 per ounce (31.1 grams).

- Platinum (XPT/USD) fell by 1.2%, with prices hovering around $1,945 per ounce (31.1 grams).

The major 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. The over-the-counter (OTC) market, where the majority of physical metal transactions 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 the U.S. benchmark prices - COMEX (New York);

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

The gold market demonstrates high liquidity:

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

- The over-the-counter (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.