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50 golden years of innovation
Gold (GC) futures launched in 1974, and since then we have introduced a series of groundbreaking innovations that have transformed the way investors and traders engage with gold. The flagship GC contract, which represents 100 ounces of gold, has been a cornerstone of the market, providing a liquid and transparent platform for institutional and professional traders. Over the years, we have introduced new products, including Micro Gold (MGC) futures, designed to cater to different segments of the market and offer more choice and flexibility in trading and hedging strategies.
The introduction of our 1-Ounce Gold (1OZ) futures contract on January 13 has made the gold market more accessible by reducing the minimum trade size to one ounce, allowing individual investors to participate with lower upfront capital and costs.
A great way to get started with 1OZ futures is by first learning the fundamentals of the gold market. Explore our extensive educational resources designed to guide you on how Gold futures work, key trading strategies and how 1OZ futures can help you manage risk and diversify your portfolio.
New PGM Weekly options will provide precision trading for the energy transition
Fueled by newer, greener technologies such as hydrogen fuel cells, the relevance of platinum and palladium in the energy transition is only going to grow, as evidenced by a 243% increase in Palladium options and a 57% rise in Platinum options in 2024.
Launched on February 3, Platinum and Palladium Friday Weekly options will join the monthly options line-up. Expiring every Friday, Platinum and Palladium Friday Weekly options allow you to manage the associated risk with these critically important metals and optimizing your trading strategy
Product Updates
Recycling revolution: enhanced tools for ferrous scrap trading
Recycled ferrous scrap is a vital component in new steel production and accounts for over half of the U.S. steel output. Recently, we launched several new Ferrous Scrap options contracts that help market participants navigate the scrap market and provide an enhanced tool to mitigate price volatility risk.
HMS 80/20 Ferrous Scrap, CFR Turkey (Platts TSI) options, which launched on January 27, complements our futures contract. This new contract will help you navigate the scrap market, specifically around the key import market of Turkey.
Chicago No1 Busheling Ferrous Scrap (Fastmarkets) options launched on February 3, and will complement the recently launched futures contract.
Tools to help navigate the ever-changing lithium market
Lithium is only mined in a few countries, making it susceptible to disruption and price volatility. Lithium futures help market participants hedge against these risks.
Lithium Hydroxide (LTH) futures have seen an average daily trade volume of 361 contracts (over 300 metric tons), a 345% increase year-to-date.
This contract enhances market transparency, standardization and liquidity, simplifying risk management for participants.
Key base metals continue to offer a viable alternative
Copper and aluminum are vital materials in construction for the energy transition. Both contracts have traded on COMEX for over a decade, with 2024 seeing increased activity.
Aluminum (ALI) futures averaged 6.1K contracts per day, a 25% increase from 2023.
Copper (HG) futures averaged 109K contracts per day, up 6% from 2023.
These physically settled contracts provide the robust infrastructure expected from a world-leading derivatives exchange.
Surging volumes: How Metals Weekly options can transform your trading strategies
Metals Weekly options for gold, silver and copper have seen increased trading activity since 2024, driven by macroeconomic events and global interest rate adjustments, leading to higher demand for hedging against price volatility.
Gold Weekly options averaged over 22K contracts per day, a 61% year-over-year increase.
Silver Weekly options averaged nearly 4K contracts daily, up 91%.
Copper Weekly options increased 106% to 747 contracts per day.
These volume increases enhance market liquidity and reduce bid-ask spreads, making Metals Weekly options more accessible. The growth of these products makes them a compelling choice for traders looking to diversify portfolios or manage risk in the metals market.
Five Things to Watch in Metals Market in 2025
From trade policy shifts to the impact of Chinese export tax rebates, 2025 is shaping up to be a pivotal year for the metals markets.
Copper’s Crosscurrents Could Energize Options, Implied Volatility in 2025
Strong energy-transition demand has pushed copper prices to record highs, leading to a positive skew in the volatility “smile” skewed as call options rose relative to put options.
Gold Silver: Major Factors That Could Impact Implied Volatility and Skew in 2025
Gold and silver made significant moves in 2024, with the yellow metal hitting an all-time high of over $2,800 in November.
The Lithium Triangle's Rise in the EV Race
Argentina, Chile and Bolivia make up the Lithium Triangle, which could eclipse China and Australia as the world's top lithium makers.
All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.