1. Introduction to Commodities
  2. Commodities: Cocoa
  3. Commodities: Coffee
  4. Commodities: Copper
  5. Commodities: Corn
  6. Commodities: Cotton
  7. Commodities: Crude Oil
  8. Commodities: Feeder Cattle
  9. Commodities: Gold
  10. Commodities: Heating Oil
  11. Commodities: Live Cattle
  12. Commodities: Lumber
  13. Commodities: Natural Gas
  14. Commodities: Oats
  15. Commodities: Orange Juice
  16. Commodities: Platinum
  17. Commodities: Rough Rice
  18. Commodities: Silver
  19. Commodities: Soybeans and Soybean Oil
  20. Commodities: Sugar
  21. Commodities: Wheat
  22. Understanding Commodities Trading

The ancient Egyptians were the first to smelt gold around 3600 B.C. A thousand years later, gold jewelry emerged as the goldsmiths of ancient Mesopotamia crafted a burial headdress made of lapis, carnelian beads and leaf-shaped gold pendants. Since these early days, mankind has been captivated by gold, and the desire to own it has led to great gold rushes and wars. In 1511, King Ferdinand of Spain declared, "Get gold, humanely if you can, but at all hazards, get gold!” Today, gold is sought after for investment purposes and a strong jewelry market and is also used in the manufacturing of numerous electronic and medical devices.

Contract Specifications

Ticker Symbol

GC (CME Globex)

Contract Size

100 troy ounces

Contract Months

G, J, K, M, Q, V, Z

Trading Hours

CME Globex: Sunday – Friday, 6:00 p.m. – 5:00 p.m. (there’s an hour break from 5:00 to 6:00 p.m. each day)

Last Trading Day

The third last business day of the delivery month

Price Quote

U.S. dollars and cents per troy ounce

Tick Size

$0.10 per troy ounce ($10 per contract)

Production

Gold-mining operations take place on every continent except Antarctica. Much of the world's gold was mined in the modern, post-war era. In recent decades, more countries have emerged as gold producers. As a result, gold mining has become less geographically concentrated and more stable. Today, the top producing countries are China, Australia, Russia, the U.S., Canada, South Africa and Peru.

Price Drivers

Gold has experienced some of the most dramatic price fluctuations in the commodity markets. Some factors that drive price include:

  • central bank reserves
  • value of the U.S. dollar
  • interest rates
  • worldwide jewelry and industrial demand (including from emerging economies)
  • wealth protection (especially during times of geopolitical tensions)

Commodities: Heating Oil
Related Articles
  1. Investing

    What Drives The Price Of Gold?

    Gold prices are based on the economy and actual uses, but there are many other factors that dictate gold's perceived value.
  2. Investing

    Does it Still Pay to Invest in Gold?

    This asset's appeal dates back thousands of years. Find out whether it can live up to the hype.
  3. Investing

    Getting Into The Gold Market

    Add some sparkle to your portfolio by getting in on this classic commodity.
  4. Investing

    The Midas Touch For Gold Investors

    Find some golden opportunities by investing in gold commodities or futures contracts.
  5. Investing

    8 Reasons To Own Gold

    This precious metal's rich history stems from its ability to maintain value over the long term.
  6. Investing

    Why Gold Matters

    Gold is a very useful investment during periods of instability and high inflation.
  7. Investing

    Gold: The Other Currency

    Throughout history, gold has held its value against paper currencies. Learn how it can help offset market risks.
  8. Investing

    Why is Gold a Counter Cyclical Asset?

    Gold is widely considered a safe haven during market turbulence. History has proven gold performs counter cyclically to the state of the U.S. economy.
  9. Investing

    Not All That Glitters Is Worth Owning, Especially Gold

    What's the better investment for the long term, gold or equities?
  10. Investing

    Top 5 Gold ETFs as of November 2017

    Gold ETFs offer a convenient way to take advantage of the volatility of the precious metals market.
Frequently Asked Questions
  1. What Is the Difference between Tier 1 Capital and Tier 2 Capital?

    Tier 1 capital is a bank's core capital, whereas tier 2 capital is a bank's supplementary capital.
  2. How is the stock market affected by Thanksgiving and Black Friday?

    Thanksgiving and Black Friday sales numbers are considered to be important indicators for stock market activity throughout ...
  3. What is the difference between overdraft and cash credit?

    The primary differences between overdraft and cash credit lie in how they are secured and whether the money is lent out of ...
  4. How are stock warrants different from stock options?

    A stock warrant is like a stock option, but there are a few key differences.
Trading Center