Gold
The premier precious metal and safe-haven asset, priced in $/troy oz on COMEX and driven by real interest rates, dollar strength, and risk sentiment.
Gold trades on COMEX (CME Group) in contracts of 100 troy ounces. It is the archetypal safe-haven asset — historically holding or gaining value during equity bear markets, banking crises, and geopolitical stress.
Gold's key macro drivers are real interest rates (gold yields nothing, so rising real rates increase its opportunity cost) and the US dollar (gold is dollar-denominated; a stronger dollar makes gold more expensive for foreign buyers). The relationship with real rates is particularly tight: gold tends to rally when real 10-year Treasury yields are falling or deeply negative.
Central bank buying has been a structural support since 2022, with EM central banks diversifying reserves away from the dollar. Physical demand from India and China adds a seasonal demand layer.
Example
Gold trades at $2,380/oz. One COMEX contract (100 oz) has a notional value of $238,000. A $50/oz move generates $5,000 per contract. Initial margin is approximately $9,000 — roughly 26:1 notional leverage.
Related Terms
Benchmark Price
A widely accepted reference price for a commodity that other grades, contracts, or products are priced against — WTI, Brent, Henry Hub, and COMEX gold are key examples.
BeginnerCommitment of Traders (COT)
A weekly CFTC report showing the aggregate positions of commercial hedgers and non-commercial speculators in US futures markets — a key sentiment gauge.
IntermediateGold/Silver Ratio
The number of silver ounces required to buy one ounce of gold — a measure of relative precious metal valuation that traders use to rotate between the two.
IntermediatePrecious Metals
Gold, silver, platinum, and palladium — rare, durable metals with monetary history and industrial uses, traded as safe-haven assets and inflation hedges.
BeginnerSafe-Haven Asset
An asset expected to retain or gain value during market turmoil — gold, US Treasuries, and the Swiss franc are the classic examples.
BeginnerSilver
A precious and industrial metal priced in $/troy oz on COMEX, with dual drivers: safe-haven demand and industrial demand (solar panels, electronics).
IntermediateSpot Price
The current market price at which a commodity can be bought or sold for immediate delivery.
Beginner