Gold Futures Contract Specs:
- Ticker Symbol: GC
- Exchange: NYMEX
- Trading Hours: 8:20 AM until 1:30 PM EST.
- Contract Size: 100 troy ounces
- Contract Months: Feb, Apr, Jun, Aug, Oct, Dec
- Price Quote: price ounce. Ex $655.50 per ounce
- Tick Size: $0.10 (10¢) per troy ounce ($10.00 per contract).
- Last Trading Day: Close of business on the third to last business day of the maturing delivery month.
Gold Fundamentals:
Gold is a superior industrial commodity, which is an excellent conductor of electricity and very resistant to corrosion. Gold is mostly used in the production of jewelry and minting coins.
The world's largest producers of gold are South Africa (16%), U.S. (12%), Australia (11%) and China (7.5%)
Nevada is the largest gold producing state by far, then Alaska and California.
Investment vehicles for gold are: gold futures, gold bullion and coins, gold ETFs and gold mining stocks.
The record high price for gold futures was about $875 in 1980.
Gold Futures Reports:
- Status Report of U.S. Treasury-Owned Gold - This report from the U.S. Treasury summarizes the amount of gold bullion and gold coins currently owned by the U.S. Treasury.
- Gold Supply and Demand - Summarized by the World Gold Council. The report gives a nice summary of where gold demand comes from and compares each category to the previous year.
Tips on Trading Gold Futures:
- Gold typically moves higher in times of crisis and panic. A stock market crash, an unexpected war and terror attacks can lead to a buying frenzy in gold to use as a safe haven.
- Gold has historically moved higher during periods of high inflation.
- Supply and demand always play a part in commodities. An increase in speculation in gold from investors can lead to higher demand and cause gold futures prices to move higher.
- Gold futures prices have an inverse relationship with the price of the U.S. dollar, since gold is priced in dollars. If the value of the dollar declines over time, the price of gold should rise.
