Gold prices fall 0.5% to trade at $4400 on global markets on Tuesday

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On Tuesday, gold (XAU/USD) is down 0.5% and trading at $4,400 per troy ounce (31.1 grams) of gold on the global precious metals market.

Platinum (XPT/USD) on the spot market is down 0.8% and quoted at $1,760 per troy ounce (31.1 grams) of platinum.

The main trading platforms for precious metals are concentrated in the London over-the-counter 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. The over-the-counter (OTC) trading center, where the majority of physical metal exchanges occur through major banks and dealers, setting standard prices (fixing) – LBMA (London);

2. The primary platform 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 over-the-counter (OTC) segment shows even larger volumes – approximately $60-80 billion per day.

Overview presented by Alexey Grishchenko, Doctor of Economics, Professor at the Department of Operational and Sectoral Management of the Faculty of "Higher School of Management" at the Financial University under the Government of the Russian Federation.