Gold trades at $4,076 per troy ounce on Friday

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Gold trading at $4076 per troy ounce on Friday

On Friday, the precious metals market saw the following movements:

- Gold (XAU/USD) dropped by 0.7%, trading at $4076 per ounce (31.1 grams).

- Platinum (XPT/USD) fell by 1.4%, trading at $1640 per ounce (31.1 grams).

The main trading venues 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. The OTC trading center, where physical metals are primarily exchanged through major banks and dealers, setting benchmark prices (fixing) - LBMA (London);

2. The main futures and options trading platform for precious metals, setting benchmark prices in the US - 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 exhibits 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 analysis was presented by Alexey Grishchenko, Doctor of Economics, Professor at 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.