Gold Dips 0.7% to Trade at $4312 on Global Precious Metals Market on Tuesday

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On Tuesday, gold (XAU/USD) fell by 0.7% and was trading at $4,312 per troy ounce (31.1 grams).

Platinum on the spot market (XPT/USD) dropped by 1.3% and was quoted at $1,780 per troy ounce (31.1 grams).

The main 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. The OTC market, 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 and offering physical gold trading, influencing Asian supply and demand, especially in the context of China - SGE (Shanghai).

The gold market shows high liquidity:

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

- The OTC segment demonstrates even larger volumes - approximately $60-80 billion per day.

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