mini Gold (NLYG)
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 CME.
Summary Contract Specifications
- Underlying value : Gold
- Contract Size : 33 ounces of gold
- The future-value : price of 1 ounce of gold x 33
- Physical delivery
- Periodicity : 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.
- Delivery Period : the third last business day of the delivery month.
Trading example
- Gold at 1.153,1.
- The value of one future contract Mini- Gold is 1.153,1 x 33 $ = 38.523 $.
- Buy at 1.153,1 and sell at 1.155,1.
- 2 points = 2 x 33 $ = 66 $
When the goldprice goes up from 1.153,1 to 1.155,1 a profit of 66 $ on the gold future contract is realized.
