Gold prices fall 1.1% to trade at $3960 on global markets on Wednesday

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On the global precious metals market, gold (XAU/USD) dropped by 1.1% on Wednesday, trading at $3,960 per troy ounce (31.1 grams).

Platinum (XPT/USD) on the spot market fell by 1%, priced at $1,540 per troy ounce (31.1 grams).

The major 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 trading center where major banks and dealers conduct the primary exchange of physical metals, setting benchmark prices (fixing).

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

3. SGE (Shanghai): The key Asian hub, 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 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.