First notice day in gold trading

First notice day (FND) is the first day on which sellers of an expiring futures contract can notify the exchange of their intent to deliver, and long holders may be assigned delivery. For COMEX gold (GC), first notice day is the last business day of the month before the contract month. The last trading day comes later, near the end of the contract month.

How it applies to gold trading

Speculators do not want to take delivery of 100-ounce bars, so they close or roll long positions before FND. That is why volume and open interest shift from the expiring contract to the next active month in the days before first notice. Many brokers force-close or block new positions in the expiring month a few days earlier still.

The roll period can show up in charts as a price jump on continuous futures charts, reflecting the spread between months rather than a market move.

Worked example

Example (hypothetical numbers): a trader is long the December GC contract. First notice day is the last business day of November. They roll a few days earlier by selling December at 4,020 and buying February at 4,042. The $22 difference is the calendar spread, not a profit or loss.

A common mistake

Forgetting FND and receiving a delivery notice, or a broker’s forced liquidation at a poor price.

See also: Roll, Contract month codes, Physical delivery, Open interest.

Frequently asked questions