Gold Futures and Options Trading

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T & K Futures and Options, Inc. is a federally licensed U.S. corporation specializing in helping investors implement futures and options investment strategies. We are happy to answer all of your questions about Gold Futures and Options. Click here for answers to your questions.

The History of Gold and Gold Futures Market

The Egyptians mined gold before 2,000 B.C. and the first gold coin was minted on the orders of King Croesus of Lydia in the sixth century B.C. Throughout history nations have embraced gold as a store of wealth and a medium of international exchange and individuals have sought to possess gold as insurance against the day-to-day inflationary uncertainties of paper money. Gold futures and gold options are sometimes used as an inflationary and currency hedge. Gold is often thought of as a default currency in times of economic upheaval and depreciating currency values.

The United States backed its currency with gold and silver in 1792. This continued until President Richard Nixon ended the gold standard leading to dissolution of the Bretton Woods international payment system. Gold is an inactive substance and is unaffected by air, moisture and most solvents. Gold is mined on every continent with the except for Antartica where mining is not allowed. Gold is typically found in quartz veins or alluvial deposits as a free metal. Because gold is virtually indestructable most of the gold every mined is still in existence whether it be unmined or stored somewhere.

Gold Futures and Options Quick Facts

100 ounce contract
one dollar move equals $100
trades February, April, June, August, October, December and serials

Fundamental analysis of the gold market

Top Producers 2010-2011

China (approx. 13% of world production)
Australia (approx. 10% of world production)
United States (approx. 9% of world production)
South Africa
Russia

Top Demand Categories

jewelry and the arts
industrial use

Other fundamental factors affecting gold prices

political uncertainty
economic uncertainty
interest rates
currency valuations

Pure gold is one of the most malleable and ductile of all metals which makes gold such a vital industrial commodity. It is an excellent conductor of electricity, is extremely resistant to corrosion, and is one of the most chemically stable of the elements, making it critically important in electronics and other high-tech applications.

A broad cross-section of companies in the gold industry, from mining companies to fabricators of finished products, can use the COMEX Division gold future and gold future option contracts to hedge their price risk. Furthermore, gold has traditionally had a role in investment strategies, and gold futures and gold options can be found in investors' portfolios. Learn More >>>

Gold future contracts opened for trading in the United States on December 31, 1974, timed to coincide with the lifting of a 41-year ban on the private ownership of gold by U.S. citizens.

Today, gold future prices float freely in accordance with supply and demand, responding quickly to political and economic events.

Gold is an effective hedge against inflation. In addition, gold is inversely correlated to the US dollar, making it a good currency hedge. As an asset class, gold has all the advantages of being universally regarded as a currency, without what are all too often the disadvantages of being subject to the economic and monetary policies of one particular country's government.

Contact us at contact@tkfutures.com for specific gold future and gold options data or click here now open an account to open your account today.

Exchange-Based Gold Futures Trading

The New York Mercantile Exchange (NYMEX) merged with the Commodity Exchange, Inc. (COMEX) in August 1994 to become the world's largest physical commodity futures exchange. Recently the Chicago Mercantile Exchange (CME) merged with NYMEX and COMEX to become the largest exchange in the world. The gold future contract is one of the most liquid of the precious metal future contracts. During the September 11 terrorist attacks the COMEX was destroyed but within days the gold futures and gold options markets were trading again. This is a testament to the strength and viability of the metals future markets.

Trading is conducted through two divisions; the NYMEX division, which trades a variety of energy futures, platinum futures and options platinum and palladium futures, and the COMEX division which trades gold, silver and copper futures and options.

Gold Futures and Gold Option Contract Specifications

Trading Unit

100 Troy ounces

Price Quotation

U.S. dollars and cents per troy ounce.

Trading Hours (All times are New York time)

Open outcry trading is conducted from 8:20 AM until 1:30 PM.

After-hours electronic trading begins at 2:00 PM on Mondays through Fridays and concludes at 8:00 AM the following day, with the exception of Friday's session which concludes at 4:30 PM that same day. On Sundays, the session begins at 7:00 PM and concludes at 8:00 AM the following day. (Verify with exchange)

Trading Months

Gold futures trading is conducted for delivery during the current calendar month; the next two calendar months; any February, April, August, and October falling within a 23-month period; and any June and December falling within a 60-month period beginning with the current month.

Minimum Price Fluctuation

$0.10 (10¢) per troy ounce ($10.00 per contract).

Maximum Daily Price Fluctuation

Initial price limit, based upon the preceding day's settlement price, is $75.00 per ounce. Two minutes after either of the two most active months trades at the limit, trades in all months of gold futures and options will cease for a 15-minute period.

Last Trading Day

Trading terminates at the close of business on the third to last business day of the maturing delivery month.

Delivery

Gold delivered against the gold futures contract must bear a serial number and identifying stamp of a refiner approved and listed by the Exchange. Delivery must be made from a depository licensed by the Exchange.

Delivery Period

The first delivery day is the first business day of the delivery month; the last delivery day is the last business day of the delivery month.

Exchange of Futures for Physicals (EFP)

The buyer or seller may exchange a gold futures position for a physical position of equal quantity. EFPs may be used to either initiate or liquidate a gold futures position.

Margin Requirements

Margins are required for open gold futures positions.

Trading Symbol

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To learn more about the precious metal and industrial metal futures visit silver futures, copper futures and platinum and palladium futures.

Also visit Gold Futures Special Report

To open an account click online future trading.

For specific option trading information visit commodity research.

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