Lesson 2 of 3Market Mechanics·Advanced
COMEX and gold futures
How the futures market prices gold — and where it can diverge from physical.
7 min read
The CME's COMEX division is the world's largest gold futures exchange. It sets the price most quote screens display.
Contract mechanics
The standard contract is 100 troy ounces. Most contracts are cash-settled or rolled — physical delivery is a small share of activity.
Paper vs. physical
The futures market can move independently of physical supply and demand in the short run. Over longer horizons, arbitrage keeps them aligned.
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