Gold trades at $4,030 per troy ounce on Friday

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Gold trades at $4,160 per troy ounce on Friday

On Friday in the precious metals market:

- Gold (XAU/USD) is down 0.2%, trading at $4,160 per ounce (31.1 grams).

- Platinum (XPT/USD) is down 0.1%, trading at $1,610 per ounce (31.1 grams).

The main trading platforms for precious metals are focused on 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. The over-the-counter (OTC) trading center, where most physical metal exchanges occur through major banks and dealers, setting benchmark prices (fixing) - LBMA (London);

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

3. The key Asian center, which is growing by offering physical gold trading and influencing Asian supply and demand, especially in the context of China - SGE (Shanghai).

The gold market demonstrates high liquidity:

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

- The over-the-counter (OTC) segment shows even larger volumes - approximately $60-80 billion per day.

Reviewed by Alexey Grishchenko, Ph.D., Professor at the Department of Operational and Sectoral Management, Faculty of "Higher School of Management", Financial University under the Government of the Russian Federation.