Gold Dips 1% in Global Precious Metals Market on Wednesday

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In the global precious metals market on Wednesday, gold (XAU/USD) fell by 1% and was trading at $4,318 per troy ounce (31.1 grams).

Platinum on the spot market (XPT/USD) dropped by 2.5%, trading at $1,790 per troy ounce (31.1 grams).

The main trading venues for precious metals are concentrated in 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 global trading volume:

1. LBMA (London): The OTC trading hub where the majority of physical metal exchanges occur through major banks and dealers, setting benchmark prices (fixing);

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

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

It is worth noting that the gold market exhibits 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 at 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.