Gold Dips 0.6% to Trade Near $4030 on Thursday

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On Thursday, gold (XAU/USD) is down 0.6%, trading around $4030 per troy ounce (31.1g).

Platinum (XPT/USD) is also down 1% on Thursday, trading at $1600 per ounce.

The main trading hubs for precious metals are concentrated in the London Over-the-Counter 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 trading center where the main 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 US;

3. SGE (Shanghai): The key Asian center that is growing, offering physical gold trading and influencing Asian supply and demand, especially 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 over-the-counter (OTC) segment shows even larger volumes — approximately $60-80 billion per day.

Review 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.