Gold Dips 0.3% to Trade at $4,440 per Troy Ounce

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Precious metals markets are experiencing declines, with gold (XAU/USD) falling by 0.3% to trade at $4,440 per troy ounce (31.1 grams).

Platinum (XPT/USD) is also seeing a drop of 0.5%, currently trading at $1,810 per troy ounce (31.1 grams).

The major trading hubs for precious metals are concentrated in three key markets:

1. LBMA (London): The center for over-the-counter (OTC) trading, where the majority of physical metal exchanges occur through large banks and dealers, setting benchmark prices (fixing).

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

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

These three centers account for over 90% of global trading volume.

Gold markets exhibit high liquidity:

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

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

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