Gold Hits $4,000 per Troy Ounce in Friday Trading

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Gold prices hit $4,000 per troy ounce on Friday trading

On Friday, the precious metals market saw the following:

- Gold (XAU/USD) rose by 0.6%, trading at $4,000 per ounce (31.1 grams).

- Platinum (XPT/USD) fell by 2%, trading at $1,600 per ounce (31.1 grams).

The main 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. The OTC market, where the majority of physical metal exchange occurs through major banks and dealers, setting benchmark prices (fixing) - LBMA (London);

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

3. The key Asian hub, which is growing by offering physical gold trading and influencing Asian supply and demand, especially in the context of China - SGE (Shanghai).

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, Doctor of Economics, 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.