Technical Analysis Gold Futures
How Trade and Invest in Gold Futures?The first futures contracts on Gold appeared in 1974 on the American Stock Exchange COMEX. Gold futures gained popularity quickly, forcing other exchanges start trading similar instruments. Gold futures quickly gained popularity among investors, prompting other exchanges start trading similar instruments. Today, only the COMEX traders buy and sell every day more than 400,000 contracts for gold.
The dynamics of the Gold price depends on the commodities markets, the economic situation in the major countries of the world, actions of central banks and trends in the currency markets FOREX. The price of Gold Futures has an inverse correlation with the price of the US dollar. Investors have traditionally used the precious metal as a means of protection against the devaluation of the US currency. Therefore, the rising cost of Gold is usually accompanied by a fall in the Dollar US.
Where Trade and Invest in Gold Futures?London Metal Exchange (LME), a division of New York Mercantile Exchange's COMEX and Tokyo Commodity Exchange (TOCOM) are the main centers of global gold trading. This COMEX and TOCOM have a reputation for major global platforms for Futures Trading in Gold, and LME specializes in transactions in the spot market. Trading on the stock exchange COMEX and TOCOM, you can buy and sell Gold virtually around the clock from Monday to Friday.
A Gold Futures contract COMEX (ticker GC) has a volume of 100 troy ounces. Besides the New York Exchange, he traded in the electronic trading system of the Chicago Mercantile Exchange. Trades are carried out from Monday to Friday from 8:20 to 13:30 EST (EST). Also, you can trade mini futures on gold (ticker QO, the amount of the contract - 50 ounces). The price of Gold Futures on the New York Exchange is calculated in US dollars per troy ounce. The volume of Gold Futures contract on TOCOM (ticker JGA) is 1 kg of Gold. Trades take place from 9:00 to 15:30 (afternoon session) and from 17:00 until 04:00 (night session) on Japanese Standard Time (JST). Also, you can trade Mini-Gold Futures TOCOM (ticker JGPA). The volume of the contract is 100 grams. The price of Gold Futures on the Tokyo Commodity Exchange shall be calculated in Japanese yen per gram.
Investing of Gold Futures trading has several advantages over buying and selling of physical bullion. Among the main ones include:
- Trading in Gold Futures, you do not spend money on storage of physical bullion. This significantly reduces the associated costs.
- Invest in Gold Futures, you can shorts gold without having to engage in physical bullion broker.
- Gold Futures are the most liquid instrument in comparison with the physical bullion. This allows you to make money a small short-term price fluctuations.
- The cost of gold futures is changed only in accordance with market forces, which can be easily predicted.
- Trade Gold on the stock exchange with a reliable broker!