Gold futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of gold at a predetermined price on a future delivery date. They are a way for companies involved in the precious metals industry to hedge their gold price risk on an expected future purchase or sale of gold, and they also allow investors to participate in an easy and convenient alternative to traditional means of investing in gold. Gold futures contracts can be used for either hedging or speculation. Companies that rely on gold as materials for manufacturing or resale (jewelry) can trade them to lock-in a future price for the precious metal, while speculative investors and traders can use gold futures as a way to participate in the markets without any physical backing of the material.

Gold futures are contracts between buyers and sellers that trade on exchanges, where the buyer agrees to purchase a quantity of the metal at a predetermined price at a set future date. They have no management fees and taxes are split between short-term and long-term capital gains. Gold futures can be used as a hedge against inflation, and they are often used by companies like refineries, manufacturers, and jewelers to lock in gold prices. Investors can use gold futures as a convenient alternative to actually purchasing physical gold, and they allow investors to “store” value, hedge against recessions and market risk, speculate on prices, and profit from short-term gold fluctuations.

Gold futures trade from 6:00 p.m. U.S. ET until 5:00 p.m. U.S. ET, Sunday through Friday, with a 60-minute break each day beginning at 5:00 p.m. U.S. ET. The primary gold futures contracts are February, April, June, August, October, and December. Gold futures contracts typically close in February, April, June, August, October, or December. Gold futures trade 23 hours per day, 6 days per week.

Here are some benefits and drawbacks of gold futures:

Benefits:

• Lower price than the trading price for gold
• No management fees
• Taxes are split between short-term and long-term capital gains[[3]](https://www.investopedia.com/articles/optioninvestor/06/goldsilverfu...