Gold Trades at $4,050 per Troy Ounce on Friday

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Gold trades at $4,050 per troy ounce on Friday

On Friday, precious metals markets saw the following movements:

- Gold (XAU/USD) rose by 0.1%, trading at $4,050 per ounce (31.1 grams).

- Platinum (XPT/USD) fell by 0.2%, trading at $1,600 per ounce (31.1 grams).

The major trading hubs for precious metals are focused on the London Over-the-Counter 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 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, which is 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 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.

Overview provided by Alexey Grishchenko, Ph.D., Professor at the Department of Operational and Sectoral Management of the Higher School of Management at the Financial University under the Government of the Russian Federation.