Gold Dips 0.2% to Trade Near $4280 per Troy Ounce on Thursday

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On Thursday, gold (XAU/USD) is down by 0.2%, trading around $4,280 per troy ounce (31.1 grams).

Platinum (XPT/USD) is up by 0.2% on Thursday, with its price at $1,760 per ounce.

The main trading hubs 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. LBMA (London): The OTC trading center where major banks and dealers exchange physical metals, setting benchmark prices (fixing);

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

3. SGE (Shanghai): The key Asian hub, growing in influence by offering physical gold trading and impacting 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 OTC segment demonstrates 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.