Gold prices surge 2.3% in precious metals market

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Gold (XAU/USD) is surging by 2.3%, currently trading at $4,316 per troy ounce (31.1 grams).

Platinum on the spot market (XPT/USD) is down by 1.5%, trading at $1,667 per troy ounce (31.1 grams).

The main 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. LBMA (London): The hub for OTC trading, where physical metals are primarily exchanged between 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, growing in influence by offering physical gold trading and impacting 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—approximately $60-80 billion per day.

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