Tag Archives: Gold Futures

Gold Futures

When it comes to assets, gold is one of the most popular in the world. The precious metal has proved over the years its worth with an impressive record. Gold investment is a long-term strategy in some situations and in others; it is a short-term investment, e.g. for speculation trades. Anyone looking to dabble in gold futures, a number of options are available to them. This sometimes leaves one wondering which course of action they will take.

There are several strategies when it comes to trading in gold futures. They include the following;

The Exchanges

The first step for anyone wanting to trade in gold futures is to decide on the exchange they will utilize. Three of the most known options across the world include;

Commodity Exchange

The COMEX is a member of the CME group; it offers exposure to a variety of commodities focused on metals that also include gold. One hundred troy ounces represent the standard gold contract whereas the MINY and macro are represented respectively by 50 and 10 ounces.

London Metal Exchange

The LME gives gold rewards curve data to any particular investor that might be interested in having themselves signed up. The investor is able to view the forward curves well in advance, offering them a long-term view on the metal.

Multi-Commodity Exchange

This Indian based exchange offers a variety of different contracts for gold i.e. 1kg for standard gold, 100gms (gold mini), 8gms (gold guinea) and 1gm (gold petal).

Gold trading strategies

When it comes to future gold contracts, a considerable amount of attention is required and therefore, left only to those traders, who are most active. Neglect of one’s position for even an hour may have a dramatic effect on how one’s investment turns out.

The big price drivers of gold are overall demand, inflation and the actions of global banks. One has to learn how to read and interpret the trend in which the market is going.