Gold holds steady near $3,987 per troy ounce in Friday trading

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Gold prices are holding steady at around $3,987 per troy ounce on Friday.

Here’s the market update for Friday:

- Gold (XAU/USD) is down 0.2%, trading at $3,987 per ounce (31.1 grams).

- Platinum (XPT/USD) is down 3%, trading at $1,444 per ounce (31.1 grams).

The major trading hubs for precious metals are 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. The over-the-counter (OTC) market, where physical metals are primarily traded through major banks and dealers, setting benchmark prices (fixing) - LBMA (London).

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

3. The key Asian hub, which is growing and offering physical gold trading, influencing Asian supply and demand, especially in the context of China - SGE (Shanghai).

The gold market shows high liquidity:

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

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

This overview was provided 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.