Futures Act as Price Benchmark
Gold futures, meanwhile, have long acted as a global price benchmark.
"In the dynamic world of finance, gold stands as one of the oldest and most reliable assets," said Jin Hennig, global head of Metals at CME Group. "For the past 50 years, Gold futures have been at the forefront of price discovery, serving as the global benchmark for gold pricing. Gold's quality and universal appeal have made it a mainstay in investment portfolios worldwide."
Amid this backdrop, roughly $63 billion in notional value of gold is traded daily across the entire Gold futures product line, according to CME Group data. Gold futures at CME Group provide unmatched liquidity and market depth to boost trading efficiencies for market participants globally.
"CME is an extremely important aspect of the gold business," said Dennis Suskind, a member of the CME Group Board of Directors, adding that the exchange began offering Gold futures in 1974, which allowed Americans to trade the yellow metal after they were banned from owning gold many years prior.
"Gold has a special place in the world," added Suskind. "People in the 60s, 70s and 80s would use [it] as a substitute for anything – inflation, deflation – it was the way to hedge anything that you had; it was a stable commodity, it was a store of value, [and] you could convert it to dollars anytime you wanted to very easily.
"There is nothing else in the world that is a substitute for gold."
Watch their full remarks in the video above.
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