Gold Dips 1.2% to Trade Near $4090 per Troy Ounce on Thursday

© ООО Региональные новости

On Thursday, gold (XAU/USD) fell by 1.2%, trading around $4,090 per troy ounce (31.1 grams).

Platinum (XPT/USD) also dropped by 2% on Thursday, with its price at $1,600 per ounce.

The major trading platforms 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 center for OTC trading, where major banks and dealers exchange physical metals, setting benchmark prices (fixing);

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

3. SGE (Shanghai): A key Asian hub that is growing, 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 provides an average daily turnover of around $50-70 billion;

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

Overview presented by Alexey Grishchenko, Ph.D., 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.