Gold prices drop 3%, trading at $4,145 per troy ounce

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Precious metals markets are witnessing a decline, with gold (XAU/USD) dropping by 3% to trade at $4,145 per troy ounce (31.1 grams).

Platinum (XPT/USD) on the spot market is also falling by 3%, currently trading at $1,730 per troy ounce (31.1 grams).

The major 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 center for OTC trading, 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 hub, which is growing rapidly by offering physical gold trading and influencing 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, with approximately $60-80 billion traded daily.

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