Gold futures contract moved higher in Asian trading after

Gold futures contract moved higher in Asian trading after Japan reported weaker yen levels, effectively lowering bullion costs domestically and boosting regional demand. China and Russia were the top two gold-producing countries in 2024, with output of 380 and 310 metric tons, respectively. China and Russia have been steadily acquiring gold and expanding their reserves over the past years, and have likely absorbed a significant portion of their domestic gold output. Therefore, their gold holdings are likely far higher than are stated in statistics. This standardization is key to a properly functioning futures market, where contracts are “fungible,” or interchangeable, with one another. This helps make these markets accessible and useful to a wide variety of market participants: banks, farmers, oil refiners, speculators, and others. Contract specs also apply in asset classes such as options. Let’s look at some examples of futures contract specs. Hedge fund positioning reports show net longs in the gold futures contract at 165,000 lots, their highest since March, indicating strong conviction in price appreciation over the next quarter.