If you are interested in commodity trading, then futures contracts for gold are one of the most popular tools for investing in this precious metal. Essentially, these are forward contracts with gold as the underlying asset, allowing you to profit from price differences without owning physical gold.

To start trading, you must open a futures account with a futures company. Each gold futures contract has its own characteristics such as margin requirements, delivery month, minimum price fluctuation, and delivery method. Your profit or loss comes from the price difference between when you open and close the position. If you hold the contract until maturity, you will need to take physical delivery.

The largest and most active market for gold futures contracts is COMEX in New York. Here, the most common gold futures contract is "New York Gold." A standard lot includes 100 ounces of 99.5% pure gold, while a smaller lot is 50 ounces with a minimum price fluctuation of $0.25 per ounce. Interestingly, COMEX operates like a stock exchange—it only provides the venue, tools, and regulations to ensure fair trading but does not directly participate in gold futures transactions.

Trading hours last 23 hours each day outside of weekends, with closing times from 5:15 to 6:00 a.m. local time for settlement.

Besides COMEX, the Shanghai Futures Exchange also offers gold futures contracts with different features. Each lot here is 1 kilogram of gold, and you can trade with approximately 7x leverage. Interestingly, Shanghai supports T+0 trading and allows two-way trading, divided into day and night sessions. The minimum margin is 8% of the contract value, and the smallest price movement is 0.02 yuan per gram. Of course, temporary adjustments may apply during periods of high market volatility.

In summary, whether it’s COMEX or Shanghai, gold futures contracts provide flexible trading opportunities for those who want to participate in the gold market without owning physical gold.