Gold Dips 0.1% to Trade Near $4600 per Troy Ounce on Thursday

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On Thursday, gold (XAU/USD) is down 0.1%, trading around $4,600 per troy ounce (31.1g).

Platinum (XPT/USD) is also down 0.3% on Thursday, with its price at $1,830 per ounce.

The major 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. LBMA (London): The hub for over-the-counter (OTC) trading, where major banks and dealers exchange physical metals, setting benchmark prices (fixing);

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

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

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

- Futures trading generates 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.

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