Gold Dips 0.8% to Trade at $4044 on Global Precious Metals Market on Tuesday

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On Tuesday, gold (XAU/USD) is down 0.8% and trading at $4,044 per troy ounce (31.1 grams).

Platinum on the spot market (XPT/USD) is down 1.5% and is quoted at $1,603 per troy ounce (31.1 grams).

The main trading venues 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. The OTC trading center, where the main exchange of physical metals takes place through large banks and dealers, setting standard prices (fixing) - LBMA (London);

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

3. The key Asian center, 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 Alexei 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.