Gold Dips 0.7% to Trade Near $4040 per Troy Ounce on Thursday

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On Thursday, gold (XAU/USD) is down by 0.7%, trading around $4040 per troy ounce (31.1g).

Platinum (XPT/USD) is also down by 1.5% on Thursday, with its price at $1590 per ounce.

The major trading hubs for precious metals are concentrated in 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. LBMA (London): The OTC market hub where the main exchange of physical metals takes place through large 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, 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.

Reviewed by Alexey Grishchenko, Doctor of Economics, Professor at the Department of Operations and Industry Management, Higher School of Management, Financial University under the Government of the Russian Federation.