About Gold Futures Prices
A futures contract is simply a standardized contract between two parties to buy or sell a specified asset quantity at a specified date in the future at a price agreed upon today with such contracts being traded on a futures exchange. Specifically though, a gold futures contract or “option” is a right but not the obligation to buy or sell gold at a predetermined price during a specific period of time with the price of the option being determined by the price of gold plus a premium that is based on the time period left until the option expires. That is how Gold futures prices are determined.
And while gold futures offer both traders and investors a way to earn a substantial amount of money, there can also be a significant amount of risk involved. Hence, one should do their homework before they consider investing or gold future price trading.
To learn more about gold futures and futures in general, check out the CME Group’s Gold Education page as well as the homepage of Futures magazine, a US-based monthly magazine about commodity futures contracts, stocks, options, derivatives and Forex.