GC futures in gold trading
GC futures are the COMEX gold contract: 100 troy ounces, $0.10 ticks worth $10, with February, April, June, August, October and December the active months.
Also called COMEX gold futures, Gold futures contract, MGC micro gold
GC is the ticker for the COMEX 100-troy-ounce gold futures contract. It trades in $0.10 ticks, each worth $10 per contract, and settles by physical delivery of 100-ounce bars (or three 1-kilogram bars) during the delivery month. Contracts are listed for every month, but liquidity concentrates in the even months: February, April, June, August, October and December. The front active month rolls forward roughly a month before expiry. The micro contract MGC is one tenth the size.
How it applies to gold trading
Futures differ from XAUUSD in several ways that matter. The price is for future delivery and trades above spot by the basis. There is no swap; the financing cost is embedded in the contango. Margin is set by the exchange and changes with volatility. Positions must be rolled or closed before first notice day to avoid delivery. And a GC contract at $4,000 has a notional value of $400,000, so one tick is $10 and a $10 move is $1,000, equivalent to one standard XAUUSD lot.
Futures also provide the data spot traders rely on: real volume, open interest, the settlement price and the COT positioning report all come from GC.
The spot-versus-futures guide on this site compares the total cost of holding gold through each vehicle over a month and a year, including swap, roll and basis convergence.
A common mistake
Holding a GC position into first notice day without the capital or intention to take delivery. The broker will usually close it, often at a poor moment.
See also: COMEX, Roll, Contango, Tick.
Frequently asked questions
What is the tick value of GC gold futures?
$0.10 per troy ounce, which is $10 per 100-ounce contract. The micro contract MGC has the same $0.10 tick worth $1.
Which GC contract month should I trade?
The most active month, which is usually the nearest even month (February, April, June, August, October or December) until about a month before its expiry, when volume shifts to the next one.