Gold Futures Margin & Contract Specifications

What is Gold?

Gold is a precious metal with the dual characteristics of both currency and commodity. Historically, it has been used as money and a store of value. Even under today’s fiat currency system, gold is still regarded as a safe-haven asset. During times of market turmoil or rising inflation, investors often shift capital into gold to preserve wealth.

Gold is also one of the most actively traded commodities worldwide, primarily priced in U.S. dollars. Its price is heavily influenced by interest rates, the U.S. dollar index, geopolitical risks, and inflation expectations.

Gold Futures (GC/MGC) – Functions and Features

Gold futures allow investors to participate in the price movements of gold. Whether for hedging, speculation, or portfolio diversification, gold futures provide broad applications.

Compared with the physical gold market, the futures market offers longer trading hours, higher liquidity, and nearly 24-hour access, reflecting global market dynamics. This makes gold futures suitable for responding quickly to unexpected events or international risks.

Exchange

New York Mercantile Exchange (NYMEX)

Key Factors Affecting Gold Futures (GC/MGC)

1. U.S. Dollar Index (DXY)

Since gold is priced in U.S. dollars, a stronger dollar makes gold more expensive for holders of other currencies, reducing demand. Conversely, a weaker dollar generally supports higher gold prices. Gold and the dollar often exhibit an inverse relationship.

2. Interest Rates and Federal Reserve Policy

Higher interest rates increase the opportunity cost of holding non-yielding assets like gold, potentially driving prices lower. Conversely, expectations of rate cuts or actual easing tend to support gold. Fed monetary policy, rate decisions, and dot-plot forecasts often have a direct impact on gold prices.

3. Inflation and Inflation Expectations

Gold is widely seen as a hedge against inflation. When consumer prices rise and real purchasing power falls, investors tend to buy gold to protect value, pushing prices upward.

4. Geopolitical Risks and Safe-Haven Demand

Events such as wars, financial crises, or major stock market downturns can trigger panic and safe-haven flows into gold, reinforcing its role as a “safe harbor” asset.

5. Physical Demand and Central Bank Purchases

Jewelry demand, consumer purchases in countries like China and India, and gold-buying activity by central banks all affect supply-demand dynamics and influence price trends.

Gold Margin

How much money is needed to trade futures? At the beginning, the required margin is the initial margin. While holding a position, the margin after deducting floating profits and losses must remain above the maintenance margin; otherwise, a margin call will be issued. For day-trading margin, only half of the margin is required, provided the position is closed before the market closes.

Foreign Futures

Gold Contract Specifications

Here is a summary for traders of the contract specifications, exchange, trading hours, minimum price fluctuation, and available trading months for GoldFutures, E-micro GoldFutures.

GoldLast Trading Day

Futures