CME Group, a global leader in derivatives markets, has announced its plans to introduce a new 1-ounce Gold futures contract on January 13, 2025, pending regulatory approval. The move is designed to address the growing retail demand for gold as an investment, offering traders an additional tool to diversify their portfolios.
Jin Hennig, Managing Director and Global Head of Metals at CME Group, pointed to the significant rise in retail interest in gold as a primary driver for the introduction of this contract. According to Hennig, the new 1-ounce Gold futures will provide retail traders with increased flexibility and better access to the liquidity and efficiency that CME Group is known for in the commodities markets. This new offering is expected to appeal to a wider range of investors who seek exposure to gold but with smaller, more accessible contract sizes.
Industry figures have praised the move. Steve Sanders, Executive Vice President of Marketing and Product Development at Interactive Brokers (NASDAQ:IBKR), expressed strong support for the new contract. He noted that the 1-ounce Gold futures would offer clients a transparent, cost-effective way to manage their precious metals exposure and diversify their portfolios.
Similarly, Isaac Cahaha, CEO of Plus500US, highlighted the benefits the new contract would bring to global customers, making it easier for them to access gold investment opportunities. Teyu Che Chern, CEO of Phillip Nova, also welcomed the introduction, emphasizing that the smaller contract size would lower the barriers to entry for a broader spectrum of investors, including those with limited capital.
The announcement comes at a time when CME Group’s smaller precious metals contracts are experiencing record participation. The company’s Micro Gold futures, which feature a contract size of just one-tenth of an ounce, have seen impressive trading volume this year, with an average daily volume of 105,000 contracts. Meanwhile, the Micro Silver futures have also witnessed strong growth, with an average daily volume of 19,000 contracts.
The forthcoming 1-ounce Gold futures will be financially settled, with their value determined by the daily settlement price of the benchmark Gold futures contract. These contracts will be listed and traded on the COMEX exchange, and they will be subject to the exchange’s established rules. Investors and traders can access further details about the product on CME Group’s website.
As gold continues to hold strong appeal among investors, especially in uncertain economic times, this new offering is expected to further enhance CME Group’s position in the global commodities market. The 1-ounce Gold futures contract will give individual investors a more direct way to participate in the gold market, while also expanding the range of gold investment products available to retail traders.
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