Gold Rises 0.2% to Trade Near $4250 on Thursday

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On Thursday, gold (XAU/USD) is up by 0.2%, trading around $4,250 per troy ounce (31.1g).

Platinum (XPT/USD) is also rising by 1% on Thursday, with its price at $1,750 per ounce.

The major trading platforms 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. LBMA (London): The OTC trading hub where major banks and dealers conduct the primary exchange of physical metals, setting benchmark prices (fixing).

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

3. SGE (Shanghai): The key Asian center, growing in influence by offering physical gold trading and impacting Asian supply and demand, particularly in the context of China.

It is worth noting that the gold market exhibits high liquidity:

- Futures trading provides an average daily turnover of around $50-70 billion USD;

- The OTC segment shows even larger volumes—approximately $60-80 billion USD per day.

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