Gold futures are compelling because they give investors the opportunity to trade the commodity without having to pay the full amount right away. ETFs that follow the price of the yellow metal give investors access to gold by holding either physical gold bullion or gold futures contracts.

How does gold futures trading work?

A futures contract buyer locks in the right to buy gold at the current contract price, and a seller locks in the same price to deliver the gold on the contract date. Traders, who have no interest in actually buying or selling gold, can buy and sell futures contracts to profit from the changing price of the metal.

How much does a gold futures contract cost?

At today’s prices, therefore, a gold futures contract would be worth approximately $130,300 with gold currently trading at $1,303 per ounce. A silver futures contract would have a value of $103,150 with silver currently trading at $20.63 per ounce.

What is the difference between spot gold and gold futures?

Spot Gold – As the term implies, spot gold refers to trade in which gold is purchased immediately, i.e. on the spot. Futures Gold – Futures Gold refers to trade in which a transaction is executed on a particular date but the product delivery will take place only in the future, at an agreed upon day.

Can you take delivery of gold futures?

Futures contracts typically reference a calendar month for assessing a price reference or for effecting delivery. Gold, Silver, Platinum and Palladium delivery can be made on any business day during the contract month.

How do you trade gold successfully?

Simple Gold Trading Strategy

1. Step #1: Buy Gold in the trading months with above average return.
2. Step #2: Wait until Gold retrace to the 0.618 Fibonacci Retracement of the previous market swing.
3. Step #3: Buy at support or on the way up as we break above resistance.
4. Step #4: Place protective Stop Loss below last swing low.

How do I get a gold futures contract?

Buying a gold futures contract which controls 100 ounces requires $7,150 in initial margin. Buying physical gold requires the full cash outlay for each ounce purchased. Gold options prices and volume data are found in the Quotes section of the CME website, or through the trading platform provided by an options broker.

Why are gold futures a good way to invest?

Gold futures are compelling because they give investors the opportunity to trade the commodity without having to pay the full amount right away. An agreement is made between two parties, including the spot price and weight of gold, and a delivery month — set in the future — is decided upon.

When does a gold futures contract end in delivery?

Very few gold futures contracts ever end in settlement by delivery. The futures contract seller typically covers a short futures position at a profit if the price of gold has declined — and takes a cash loss if the price has risen.

Is there a free chart of gold futures?

This page contains free live streaming charts of the Gold Futures. The chart is intuitive yet powerful, offering users multiple chart types including candlesticks, area, lines, bars and Heiken Ashi. There are flexible customization options and dozens of tools to help you understand where prices are headed.

When is the settlement date for gold futures?

These contracts have a physical settlement type — available for delivery on any business day starting on the first business day of the delivery month until the last business day of the delivery month.