The Basics of Gold

The Basics of Gold

 

Brief History

Gold is one of the leading commodities that are being traded in the market. And it is understandably so as trading gold roots itself from ancient times when pharaohs still ruled Egypt with their cat idols and sun gods, when westerners are still discovering masses of lands and naming it after their kings, and when Mongolians are still hell bent on taking over the world. Back then gold was already considered as sacred or valuable with several tribes and civilization worshipping gold and associating it with gods and even immortality. Gold has always been one of the precious metals that had transcended generations and races of people as one of the most valuable commodities of trading.

As early as 1,500 B.C. there had already been evidences of gold being used to transact with gold coins and other gold jewelry.

Today, it retains its worth as one of the most precious commodities used in jewelry, computers, and in investments.

 

Gold Specifications

Ticker Symbol    

The ticker symbols of gold for open outcry is GC (NYMEX) and for electronic is EGC (Globex).

Contract Size    

The contract size for gold is 100 troy ounces.

Contract Months    

The contract months for gold are all 12 months.

Trading Hours    

The trading hours for gold is conducted from 8:20am-1:30pm EST for open outcry while for electronic trading, it is conducted through the CME Globex trading platform from 6pm Sundays through 5:15 pm Fridays, EST, with a 45-minute break each day between 5:15 pm and 6pm.

Last Trading Day    

The last trading day is at the close of business on the third to last business day of the maturing delivery month.

Last Delivery Day    

The last delivery day is at the last business day of the contract month.

Price Quote    

The price quoted are U.S. dollars and cents per troy ounce

Tick Size    

The ticks size is at 10 cents per troy ounce ($10 per contract) in the NYMEX.

Daily Price Limit

There are no price limits except for the electronic market that has their own standards.

Gold Exchanges

The futures contract for gold is traded, for open outcry, at the New York Mercantile Exchange (NYMEX) through its Commodity Exchange (COMEX) division, For electronic trades, it may be done through the Chicago Board of Trade(eCBOT), India's National Commodity and Derivatives Exchange (NCDEX), Dubai Gold and Commodities Exchange (DGCX), Multi Commodity Exchange (MCX) and Tokyo Commodity Exchange (TOCOM).