Gold Dips 0.7% to Trade at $4360 on Global Precious Metals Market on Tuesday

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On Tuesday, gold (XAU/USD) fell by 0.7% and was trading at $4,360 per troy ounce (31.1 grams) of gold on the global precious metals market.

Platinum on the spot market (XPT/USD) dropped by 0.6% and was quoted at $1,750 per troy ounce (31.1 grams) of platinum.

The main trading platforms 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 the 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 main platform for trading futures and options on precious metals, setting benchmark prices in the US - COMEX (New York);

3. The key Asian center, which is growing, 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 Alexey Grishchenko, Ph.D., 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.