Gold Futures and Options Trading

Perhaps no other market in the world has the universal appeal of gold. For centuries, it has been coveted for its unique blend of rarity, beauty, and near indestructibility. Nations have embraced gold as a store of wealth and a medium of international exchange; individuals have sought to possess gold as insurance against the day-to-day inflationary uncertainties of paper money. Furthermore, gold has traditionally had a role in investment strategies, and gold futures and options can be found in investors' portfolios.

Gold future contracts opened for trading in the United States on December 31, 1974, timed to coincide with the lifting of a 41-year ban on the private ownership of gold by U.S. citizens. Today, gold future prices float freely in accordance with supply and demand, responding quickly to political and economic events.

The New York Mercantile Exchange merged with the Commodity Exchange, Inc. (COMEX) in August 1994 to become the world's largest physical commodity futures exchange. The gold future contract is one of the most liquid of the precious metal future contracts. The Exchange's liquidity, price transparency, and financial integrity make it a benchmark for these markets worldwide.

visit silver futures, Platinum Palladium Futures and copper futures.

Gold Futures Commodity Contract Specifications

Trading Specs

100 Troy ounces

Price Quotation

U.S. dollars and cents per troy ounce.

Trading Hours 8:20 AM until 1:30 PM NY time.

After-hours electronic trading begins at 2:00 PM on Mondays through Fridays and concludes at 8:00 AM the following day, with the exception of Friday's session which concludes at 4:30 PM that same day. On Sundays, the session begins at 7:00 PM and concludes at 8:00 AM the following day.

Trading Months

Trading is conducted for delivery during the current calendar month; the next two calendar months; any February, April, August, and October falling within a 23-month period; and any June and December falling within a 60-month period beginning with the current month.

Minimum Price Fluctuation

$0.10 (10¢) per troy ounce ($10.00 per contract).

Maximum Daily Price Fluctuation

Initial price limit, based upon the preceding day's settlement price, is $75.00 per ounce. Two minutes after either of the two most active months trades at the limit, trades in all months of futures and options will cease for a 15-minute period. Trading will also cease if either of the two active months is bid at the upper limit or offered at the lower limit for two minutes without trading. Trading will not cease if the limit is reached during the final 20 minutes of a day's trading. If the limit is reached during the final half hour of trading, trading will resume no later than 10 minutes before the normal closing time. When trading resumes after a cessation of trading, the price limits will be expanded by increments of 100%.

Last Trading Day

Trading terminates at the close of business on the third to last business day of the maturing delivery month.

Delivery

Gold delivered against the futures contract must bear a serial number and identifying stamp of a refiner approved and listed by the Exchange. Delivery must be made from a depository licensed by the Exchange.

Delivery Period

The first delivery day is the first business day of the delivery month; the last delivery day is the last business day of the delivery month.

Grade and Quality Specifications

In fulfillment of each contract, the seller must deliver 100 troy ounces (±5%) of refined gold, assaying not less than .995 fineness, cast either in one bar or in three one-kilogram bars, and bearing a serial number and identifying stamp of a refiner approved and listed by the Exchange. A list of approved refiners and assayers is available from the Exchange upon request.

Position Accountability Levels and Limits

Any one month/all months: 6,000 net futures equivalent, but not to exceed 3,000 in the spot month.

Trading Symbol

How many troy ounces in a metric ton?

Reading about precious metals can be confusing. Often one source speaks in terms of troy ounces and another uses metric tons. For your information, there are 32,150.7 troy ounces in each metric ton.

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