CMX GOLD (XGD)
Gold futures are hedging tools for commercial producers and users of gold to provide global price discovery.
Gold futures offer ongoing trading opportunities, since gold prices respond quickly to political and economic events.
They serve also as an alternative to investing in gold bullion, coins, and mining stocks.
Today, the principal gold producing countries include South Africa, the United States, Australia, Canada, China, Indonesia, and Russia.
Gold is 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.
The contract is traded on the future market of CME.
Summary Contract Specifications
- Underlying value : gold
- Contract Size : 100 ounces of gold
- Value of the contract : gold price x 100 ounce
- Minimum fluctuation : 0,1 point (= $ 10 per contract)
- Settlement type : physical
- Periodicity : 2-monthly
- Delivery Period : the third last business day of the delivery month.
Trading example :
- Gold at 1.153,1 $ ounce
- The underlying value of one future contract of gold is 1.153,1 x 100 = $ 115.310
- Buy at 1.153,1 and sell at 1.155,1.
- 1 tick is 0,10 index point
- Profit: 20 x 10 = $ 200
