Gold Dips 0.6% to Trade at $4030 on Global Precious Metals Market

© ООО Региональные новости

In the global precious metals market on Wednesday, gold (XAU/USD) is down 0.6%, trading at $4,030 per troy ounce (31.1 grams).

Platinum on the spot market (XPT/USD) is down 0.3%, quoted at $1,640 per troy ounce (31.1 grams).

The main trading venues 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 hub where the main exchange of physical metals takes place through major banks and dealers, setting benchmark prices (fixing);

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

3. SGE (Shanghai): The key Asian center that is growing, offering physical gold trading and influencing Asian demand and supply, particularly in the context of China.

It is worth noting that the gold market demonstrates 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.