Gold futures are hedging tools for commercial producers and users of gold. They also provide global gold price discovery and opportunities for portfolio diversification. In addition, they:
Offer ongoing trading opportunities, since gold prices respond quickly to political and economic events
Serve as an alternative to investing in gold bullion, coins, and mining stocks
Things to know about the contracts:
Physically delivered
Block-trade eligible
American-style options
Can be traded off-exchange for clearing only through CME ClearPort