Gold Slips 0.1% to Trade at $4160 on Global Markets

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On the global precious metals market, gold (XAU/USD) fell by 0.1% on Wednesday, trading at $4,160 per troy ounce (31.1 grams).

Platinum (XPT/USD) on the spot market also dropped by 0.1%, trading at $1,670 per troy ounce (31.1 grams).

The main trading hubs for precious metals are focused on the London Over-the-Counter 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 over-the-counter (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 the benchmark prices in the U.S.;

3. SGE (Shanghai): The key Asian hub, 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 demonstrates high liquidity:

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

- The over-the-counter (OTC) segment shows even larger volumes—approximately $60-80 billion per day.

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