Gold prices drop 0.7% to $4316 on metals market

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Gold (XAU/USD) prices have dipped by 0.7%, currently trading at $4,316 per troy ounce (31.1 grams).

Platinum (XPT/USD) on the spot market has also seen a decline of 0.5%, trading at $1,872 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 American 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 platform for trading futures and options on precious metals, setting the standard prices in the U.S.

3. SGE (Shanghai): A key Asian hub, experiencing growth by offering physical gold trading and influencing Asian supply and demand, particularly in the context of China.

It is worth noting that the gold market exhibits high liquidity:

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

- The OTC segment shows even larger volumes, averaging about $60-80 billion per day.

This overview was presented by Alexey Grishchenko, Ph.D., Professor of Operational and Sectoral Management at the Higher School of Management of the Financial University under the Government of the Russian Federation.