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The majority of gold futures are traded on the NYMEX (New York Mercantile Exchange). The standard contract is for 100 troy ounces and the delivery months are February, April, June, August, October, and December. The contract is quoted in dollars per ounce, with a minimum
fluctuation of $.10 per ounce.
Although gold is an important industrial commodity, it is more important as a medium for international exchange. Political events have an important impact on the price of gold. When there is
political unrest, gold is strengthened against the dollar. In times of relative stability, gold prices tend to fall. Gold is also commonly viewed as a hedge against inflation, so prices tend to rise during times of high inflation rates and high inflation.
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