Gold Futures
Gold futures are commodity derivatives tied to the value of gold bullion. By purchasing a gold futures contract, a trader commits to buying gold at a predetermined price and date in the future, carrying both a right and an obligation. In India, these contracts can result in physical delivery of gold upon successful fulfillment of the contract terms. This allows traders to speculate on gold price movements or hedge against risks, with the option to take possession of the physical asset at maturity, distinguishing it from purely financial derivatives.
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