Where To Find Gold Futures

 Gold Futures

How Does the Gold Futures Market Work?

Executive Summary About Gold Futures By Christian Koch

There are two principle gold markets for bullion gold and silver. The two primary markets that determine the price of gold are the spot market and the futures market. The spot market is the market where gold for immediate delivery trades. The gold futures market is the market for gold at some date in the future.

The gold futures contract is used by institutions as well as speculators. The COMEX gold futures contract specifies delivery of 100 troy ounces of 995 pure gold. The notional value of the contract, based on a current gold price of $1390/Troy ounce is $139,000.00. In early November, 2010 the CME launched a new gold futures contract, the e-micro.

The e-micro is identical to the traditional gold futures contract except that it trades a notional 10 troy ounces of gold. If one makes or takes delivery of this contract, 10 ounces of gold changes hands. If one sells a gold contract and "gets short," then effectively, they sell gold. Futures markets are predictive. Despite the futures contract requiring physical delivery of 100 Troy ounce of gold, most contracts are closed before expiration requires delivery and it is not the norm that gold is physically exchanged.

Year End Gold Futures Update

 Executive Summary About Gold Futures By MK Smith

Individual investors have historically used gold to protect themselves from inflation, currency risk and economic uncertainty. Many investors buy physical gold bullion but exchange traded funds have gained popularity recently as an easy way to own gold with a smaller outlay of funds. Gold futures and options are another way that investors are trying to take advantage of the record price moves for gold.

Gold prices may hit $1,600 an ounce next year if the Federal Reserve Bank continues to keep interest rates low. Futures, options and foreign exchange products carry significant risk of loss and only risk capital should be used.