Gold prices rise 0.3% to hit $4000 on global markets

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Global precious metals markets saw a slight increase in prices on Monday, with gold (XAU/USD) rising by 0.3% to $4,000 per troy ounce (31.1 grams).

Platinum (XPT/USD) also saw a modest increase of 0.1%, trading at $1,550 per troy ounce.

The main trading hubs for precious metals are concentrated in the London Bullion Market Association (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 over-the-counter (OTC) market where physical metals are primarily exchanged 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 that is growing in importance, offering physical gold trading and influencing Asian supply and demand, particularly in the context of China.

It is worth noting that the gold market demonstrates high liquidity:

- Futures trading generates an average daily turnover of around $50-70 billion.

- The OTC segment shows 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 Higher School of Management, Financial University under the Government of the Russian Federation.