Gold Futures Trading Basics

Gold futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of gold (eg. 100 troy ounces) at a predetermined price on a future delivery date.

Some Facts about Gold

Gold is a soft, dense, shiny and highly attractive bright yellow metal. Since thousands of years ago, gold has been used to fashion ornaments and jewelry. Gold is also the ultimate store of value. Buying gold as an anti-inflation hedge is the primary use of gold today. [Click here to learn more about Gold and it's other uses...]

Gold Futures Exchanges

You can trade Gold futures at New York Mercantile Exchange (NYMEX) and Tokyo Commodity Exchange (TOCOM).

NYMEX Gold futures prices are quoted in dollars and cents per ounce and are traded in lot sizes of 100 troy ounces .

TOCOM Gold futures are traded in units of 1000 grams (32.15 troy ounces) and contract prices are quoted in yen per gram.

Exchange & Product NameSymbolContract SizeInitial Margin
NYMEX Gold Futures
(Price Quotes)
GC100 troy ounces
(Full Contract Spec)
USD 4,302 (approx. 5%)
(Latest Margin Info)
TOCOM Gold Futures
(Price Quotes)
-1000 grams
(Full Contract Spec)
JPY 135,000 (approx. 5%)
(Latest Margin Info)

Gold Futures Trading Basics

Consumers and producers of gold can manage gold price risk by purchasing and selling gold futures. Gold producers can employ a short hedge to lock in a selling price for the gold they produce while businesses that require gold can utilize a long hedge to secure a purchase price for the commodity they need.

Gold futures are also traded by speculators who assume the price risk that hedgers try to avoid in return for a chance to profit from favorable gold price movement. Speculators buy gold futures when they believe that gold prices will go up. Conversely, they will sell gold futures when they think that gold prices will fall.

Learn More About Gold Futures & Options Trading

Ready to Start Trading Futures?

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