CME Group has announced plans to launch a new one-ounce gold futures contract on January 13, pending regulatory approval, as it seeks to tap into the growing demand for retail gold investments. This contract represents the smallest gold futures offering from CME, following the introduction of the Micro Gold futures contract in 2013, which represented 10 troy ounces.
Traditionally, gold futures contracts traded on the CME represent 100 troy ounces of gold, but the new one-ounce contract is specifically designed to cater to retail investors, offering greater flexibility and accessibility.
Jin Hennig, Managing Director and Global Head of Metals at CME Group, highlighted that gold’s popularity as an investment has been on the rise, particularly among retail investors looking to diversify their portfolios. “Gold has always been a popular investment, but retail interest has surged in recent years. This new contract will broaden opportunities for a wider range of retail traders, providing more flexibility and access to the liquidity and efficiencies that our futures offer,” Hennig said.
The new one-ounce gold futures contract will be cash-settled based on the daily settlement price of CME’s global benchmark Gold futures contract.
The move comes as the retail gold market sees notable developments. Retail giant Costco, for example, has helped drive growth by offering one-ounce bullion coins and bars, with its gold sales increasing by “double digits” in its most recent quarterly earnings report. Costco CFO Gary Millerchip described gold as a “meaningful tailwind” for the company’s e-commerce sales.
Market participants are already welcoming the introduction of the smaller gold futures contract, with Teyu Che Chern, CEO of Phillip Nova, noting that it will allow a broader range of investors to participate in gold trading. “Gold is increasingly viewed by our clients as a key component of a well-diversified portfolio,” Che Chern added.
CME Group has also reported record levels of participation in its Micro Gold and Micro Silver futures contracts, which have seen substantial growth this year. As of 2024, the average daily volume (ADV) for Micro Gold futures reached 105,000 contracts, while Micro Silver futures saw an ADV of 19,000 contracts.
This latest initiative coincides with the CME’s celebration of the 50th anniversary of its traditional gold futures contract, underscoring the continued evolution of the gold market and CME’s efforts to meet the demands of retail investors.
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