Introduction

The CME Group, a prominent derivatives marketplace, has announced plans to introduce a 1-Ounce Gold futures contract on January 13, 2025. This initiative is subject to approval from regulatory bodies and aims to cater to the growing retail interest in gold investments.

Retail Interest in Gold

Jin Hennig, the Managing Director and Global Head of Metals at CME Group, highlighted a surge in retail interest in gold as a key factor for diversifying investment portfolios. The new 1-Ounce Gold futures are expected to provide retail traders with greater flexibility and access to the market's liquidity and efficiency.

Industry Support

Interactive Brokers (NASDAQ:IBKR), represented by EVP of Marketing and Product Development, Steve Sanders, expressed support for the new offering. He emphasized the benefits of 1-Ounce Gold futures for clients looking for transparent management of precious metals exposure and low-cost portfolio diversification.

Isaac Cahaha, CEO of Plus500US, also welcomed the addition, noting how it will ease global customer access to gold opportunities. Similarly, Mr. Teyu Che Chern, CEO of Phillip Nova, praised the introduction of the smaller contract size, which will enable a wider range of investors to engage in gold trading.

Market Trends

The announcement coincides with record participation levels in CME Group's (NASDAQ:CME) Micro Gold and Micro Silver futures products this year. Micro Gold futures have reached an average daily volume of 105,000 contracts, while Micro Silver futures hit 19,000 contracts.

Contract Details

The forthcoming 1-Ounce Gold futures will be financially settled based on the daily settlement price of the benchmark Gold futures contract. These will be listed by and subject to the rules of COMEX. Interested parties can find more details on the CME Group's website.

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