Gold Dips 0.7% in Global Precious Metals Market on Wednesday

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In the global precious metals market on Wednesday, gold (XAU/USD) is down 0.7% and trading at $4,457 per troy ounce (31.1 grams).

Platinum on the spot market (XPT/USD) is down 0.6%, trading at $1,923 per troy ounce (31.1 grams).

The main trading hubs for precious metals are concentrated in the London Over-the-Counter (OTC) 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 the majority of physical metal exchanges occur through major banks and dealers, setting benchmark prices (fixing);

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

3. SGE (Shanghai): The 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 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 Faculty of "Higher School of Management" at the Financial University under the Government of the Russian Federation.