TL;DRMetals futures cover precious metals (gold, silver, platinum) and base metals (copper). Gold (GC) is the most traded metals future and is widely used as an inflation hedge and safe-haven asset. Metals are physically delivered and trade nearly 24 hours. Micro Gold (MGC) makes the market accessible to smaller accounts.
Metals futures are contracts on physical metals traded on COMEX (a division of CME Group). They are divided into precious metals (gold, silver, platinum, palladium) and base/industrial metals (copper).
Precious metals serve dual roles: they are industrial materials and financial assets. Gold in particular is treated as a store of value and a hedge against inflation, currency devaluation, and geopolitical uncertainty.
Like energy futures, metals contracts are physically delivered. A GC contract represents 100 troy ounces of gold. If you hold to expiration, you are obligated to take or make delivery of physical gold. Retail traders close or roll before first notice day.
Gold (GC) is the flagship metals contract. Each point is worth $100 (100 troy ounces x $1.00). Tick size is $0.10 ($10.00 per tick). With gold around $2,400 per ounce, one GC contract controls approximately $240,000 in notional value. Daily volume is strong.
Silver (SI) is more volatile than gold and more sensitive to industrial demand. Each point is worth $5,000 (5,000 troy ounces x $1.00). Tick size is $0.005 ($25.00 per tick). The high tick value makes SI a large contract relative to account sizes.
Copper (HG) is primarily an industrial metal used in construction, electronics, and infrastructure. Each point is worth $25,000 (25,000 lbs x $1.00). Often called "Dr. Copper" because its price is considered a barometer of global economic health.
Micro Gold (MGC) at 10 troy ounces ($10 per point) and Micro Silver (SIL) at 1,000 ounces make precious metals trading accessible to smaller accounts.
Interest rates and the US dollar are the dominant drivers of gold prices. Gold doesn't pay interest or dividends. When real interest rates rise (rates minus inflation), the opportunity cost of holding gold increases and the price tends to fall. When real rates fall, gold becomes more attractive.
The US dollar has an inverse relationship with gold. When the dollar weakens, gold becomes cheaper for foreign buyers, increasing demand. When the dollar strengthens, gold tends to decline.
Inflation expectations drive gold as a hedge. During periods of high or accelerating inflation, investors buy gold to preserve purchasing power. This is why gold rallied significantly during the post-2020 inflation surge.
Central bank purchases have become an increasingly important demand source. China, Russia, India, and other central banks have been accumulating gold reserves, providing structural demand.
Industrial demand drives silver and copper more than gold. Silver is used in solar panels, electronics, and medical applications. Copper is essential for construction, EVs, and power infrastructure. Economic growth expectations directly affect their prices.
Metals futures trade on CME Globex from Sunday to Friday, 5:00 PM to 4:00 PM CT, with a daily 60-minute break.
The primary session for gold is 7:20 AM to 12:30 PM CT. The London gold fix (around 9:00 AM CT) is an important reference price used by the physical market.
Metals markets respond to Asian demand (particularly China and India for gold) during the Asian session and to European central bank activity during the London session. Significant moves can occur outside US trading hours.
Gold contract months follow a bi-monthly cycle (February, April, June, August, October, December) rather than quarterly.
Central banks and sovereign wealth funds are major participants in the gold market, primarily as buyers for reserve diversification.
Jewelers, miners, and industrial consumers hedge their exposure using futures. A gold mining company might sell GC futures to lock in production revenue.
Macro traders and hedge funds use gold futures to express views on inflation, interest rates, and currency trends. Gold is a core component of many macro trading strategies.
Retail traders trade gold for its trending characteristics and its sensitivity to macro events. GC tends to have cleaner trends than equity indexes, making it popular for trend-following strategies.
For most retail traders, MGC (Micro Gold) is the right starting point. Full-size GC at $240,000+ notional value requires significant capital and risk tolerance.
| Symbol | Name | Exchange | Point value | Tick size | Tick value | Settlement | Months | Micro |
|---|---|---|---|---|---|---|---|---|
| GC | Gold | COMEX | $100 | $0.10 | $10.00 | Physical | Bi-monthly (G, J, M, Q, V, Z) | MGC ($10/pt) |
| SI | Silver | COMEX | $5,000 | $0.005 | $25.00 | Physical | H, K, N, U, Z | SIL ($1,000/pt) |
| HG | Copper | COMEX | $25,000 | $0.0005 | $12.50 | Physical | H, K, N, U, Z | MHG ($2,500/pt) |
| PL | Platinum | NYMEX | $50 | $0.10 | $5.00 | Physical | F, J, N, V | None |
Trading hours: Sun-Fri, 5PM-4PM CT. Verify current specs with the exchange.