Gold Dips 1% to Trade at $4,121 on Global Precious Metals Market on Tuesday

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On Tuesday, gold (XAU/USD) prices dropped by 1% on the global precious metals market, trading at $4,121 per troy ounce (31.1 grams).

Platinum (XPT/USD) fell by 0.3% on the spot market, currently priced at $1,630 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. The OTC market, where physical metals are primarily exchanged through major banks and dealers, setting benchmark prices (fixing) - LBMA (London);

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

3. The key Asian hub, growing in influence by offering physical gold trading and impacting Asian supply and demand, particularly in the context of China - SGE (Shanghai).

The gold market exhibits high liquidity:

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

- The OTC segment shows even larger volumes, with about $60-80 billion traded daily.

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