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CME Group plans to introduce a new one-ounce gold futures contract in January 2025, targeting growing retail demand for precious metals exposure, the derivatives exchange operator announced today.
The move comes as CME's existing smaller-denomination precious metals contracts have seen record trading volumes this year. The exchange's Micro Gold futures achieved an average daily volume of 105,000 contracts, while Micro Silver futures reached 19,000 contracts.
"Gold has always been a popular investment, but retail interest has surged in recent years as more market participants look to diversify their portfolios," said Jin Hennig, Managing Director and Global Head of Metals at CME Group. "1-Ounce Gold futures will broaden opportunities for a wider range of retail traders, providing even more flexibility to access the liquidity and efficiencies that our futures provide."
The new contract will be financially settled based on the daily settlement price of CME's benchmark Gold futures contract and will be listed on COMEX, subject to regulatory approval.
Interactive Brokers, a major retail broker, has committed to offering the new contract. Steve Sanders, EVP of Marketing and Product Development at Interactive Brokers, said: "We are pleased to support CME Group's launch and offer clients access to 1-Ounce Gold futures alongside the extensive range of investment products already available on our platform. 1-Ounce Gold futures give our clients the ability to transparently manage precious metals exposure while diversifying and protecting their portfolios from political and economic events at a low cost."
Plus500US CEO Isaac Cahaha highlighted the contract's accessibility: "As gold continues to be in high demand, we are pleased that CME Group is expanding their smaller-sized offerings with 1-Ounce Gold futures. This new contract will make it easier than ever for our global customers to capture gold opportunities in a flexible, cost-effective way."
The launch reflects growing retail participation in futures markets, with Phillip Nova CEO Teyu Che Chern noting: "We welcome the introduction of the smaller 1-ounce gold futures contract, as it opens the door for a broader spectrum of investors to participate in gold trading. Gold is increasingly viewed by our clients as a key component of a well-diversified portfolio."
