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see also: Gold Futures and Options TradingTicker Symbol: GCExchange: COMEX* Hours of Trading: 8:20 Am to 1:30 PM Eastern Standard Time Unit/Contract Size: 100 troy ounces Price Quote: Price per troy ounce Min. Price Change: $0.10 per troy ounce or $10.00 per contract Months of Trading: Feb, Apr, Aug, Oct (23 mo period) and Jun, Dec (60 mo.) Last Trading Day: Occurs on the maturing delivery month, at the close of business on the third to the last business day. * in addition Gold is also traded at CBOT – the Chicago Board of Trade Quite a few factors help determine the price that gold futures are trading. In any case always consult a professional investment advisor, as gold futures rank among the riskiest of investments. Even though high profits may gained, even more can be lost.Factors of Gold Futures TradingChanges in supply in the form of annual mine production; whether production is being exceeded or even met. Too, news at any time from exploration companies depending on its nature. A common factor often overlooked too is the technology being employed to extract the ore and who has, or will be able to gain access to it.Changes in demand, in the form of, on the larger scale; countries wishing to increase their reserves of gold stocks such as China and Russia in more current years. While on the consumer level for specific products like jewelry, and electronics and all those with high current or perceived demand, in conjunction with the amounts at which these goods are or will be produced (also the realization of successful developments in areas of gold nanoparticle applications that may arise such as for the treatment of cancer, and for newer electronics.) The amounts of gold that are being hoarded can also affect trading. As can the amount of increase in speculation that occurs in the market, which tends to heighten demand. Since gold can act as a hedge against inflation, the value of the dollar (price of gold usually increases with a loss in the dollars value) and currencies can also play an important role in trading. As can expected upturns or downturns in the economy, politics, the stock market, and worldwide crisis and events on the newsfront, such as the output of crude and the status or news on any wars. GOLD CBOT and CMOX FUTURES TRADINGBoth exchanges trade at 100 ounce contracts. A 33.2 ounce contract
is traded at CBOT. Each exchange specifies delivery to New York vault locations and these vaults are subject to change by CBOT or COMEX. Both exchanges have position limits. These set a limit on the maximum number of contracts that can be held. This is defined by whether the participant is involved as a speculator or hedger. Gold OptionsBy looking at trading on COMEX gold options, it is not always easy to determine exactly what is being done in terms of options. As just one example, traders may use strategies like out of-the-money calls, as part of covered call writing that looks to reduce downside risk and potential loss with futures, that may not be so visible either on the surface of the trading floor or indicated tallying of numbers.But always too, options can be a tool in-and-of themselves. They give flexibility to the way traders anticipate gold market movements and volatilities. |
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