Gold Dips 1.5% on Thursday, Trading Around $4390

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On Thursday, gold (XAU/USD) is down 1.5%, trading around $4,390 per troy ounce (31.1 grams).

Platinum (XPT/USD) is also down 1.2% on Thursday, with its price at $1,900 per ounce.

The main trading platforms 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 where major banks and dealers trade physical metals, setting benchmark prices (fixing).

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

3. SGE (Shanghai): The key Asian center, growing in influence by offering physical gold trading and shaping Asian supply and demand, particularly in the context of China.

It is worth noting that 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 analysis was presented by Alexey Grishchenko, Ph.D., Professor of Operational and Industry Management at the Faculty of Higher School of Management, Financial University under the Government of the Russian Federation.