Gold edges up 0.2% to trade near $4000 on Thursday

© ООО Региональные новости

On Thursday, gold (XAU/USD) is up 0.2%, trading around $4,000 per troy ounce (31.1 grams).

Platinum (XPT/USD) is also rising by 0.3% on Thursday, priced at $1,500 per ounce.

The main trading hubs 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 trading center where major banks and dealers conduct the primary exchange of physical metals, setting benchmark prices (fixing);

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

3. SGE (Shanghai): The 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 demonstrates high liquidity:

- Futures trading generates 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 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.