Gold Slips 0.1% to Trade at $4120 on Global Precious Metals Market

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On the global precious metals market, gold (XAU/USD) dropped by 0.1% on Wednesday, trading at $4,120 per troy ounce (31.1 grams).

Platinum on the spot market (XPT/USD) fell by 1.1%, trading at $1,630 per troy ounce (31.1 grams).

The major 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. LBMA (London): The OTC market center where major banks and dealers trade physical metals, setting standard prices (fixing);

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

3. SGE (Shanghai): The key Asian center, 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 accounts for an average daily turnover of around $50-70 billion;

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

This overview was presented by Alexei 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.