Gold prices drop 1.3% in precious metals market

© ООО Региональные новости

In the precious metals market, gold (XAU/USD) is experiencing a decline of 1.3%, with the current quote standing at $4,060 per troy ounce (31.1 grams).

Platinum on the spot market (XPT/USD) is down by 0.1%, trading at $1,615 per troy ounce (31.1 grams).

The major trading hubs for precious metals are concentrated on 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. LBMA (London): The OTC market hub where the primary exchange of physical metals takes place through major banks and dealers, setting standard prices (fixing);

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

3. SGE (Shanghai): The key Asian center, which is growing and offering physical gold trading, influencing Asian demand and supply, 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 at the Department of Operational and Sectoral Management of the "Higher School of Management" Faculty at the Financial University under the Government of the Russian Federation.