Gold Drops 2% in Global Precious Metals Market on Tuesday

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On Tuesday, the global precious metals market saw gold (XAU/USD) prices drop by 2% to trade at $4,100 per troy ounce (31.1 grams) of gold.

Platinum on the spot market (XPT/USD) fell by 3% and is now trading at $1,600 per troy ounce (31.1 grams) of platinum.

The main trading hubs for precious metals are concentrated on the London Over-the-Counter 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. The over-the-counter (OTC) trading center, where the main exchange of physical metals takes place through large banks and dealers, setting standard prices (fixing) – LBMA (London);

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

3. The key Asian center, which is growing 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 ensures an average daily turnover of around $50-70 billion;

- The over-the-counter segment (OTC) 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 at the Faculty of Higher School of Management of the Financial University under the Government of the Russian Federation.