Gold Futures Investment Strategy Analysis

The trading type of Chinese gold futures was listed in the beginning of 2008. It is not only considered as commodity futures but also financial futures since it has qualities of commodity and currency. We mainly focus on the strategy of gold futures investment in the domestic market. In China, gold is public goods and is the pursuit of mass delight commodity.Gold is considered to be the symbol of wealth and status of market sale since ancient times, each year gold majority are made of gold jewelry, a fraction of gold are used in industrial,medical,scientific research and other industries in China, and while gold financial investment demand is still only just started, the domestic gold market demand the proportion that in less. Chinese people the understanding and knowledge of gold in the first act the role ofing more stay, but China on cognition there is a saying that "gone to buy gold, time to buy antique", gold investment and hedge function, the participation of little gold investment low. Meanwhile ordinary investors for gold futures investment is very few.First of all, we analyze the factors which impact the gold price. The importance and particularity make gold the basis of gold futures investment analysis as the underlying assets. In addition, we discuss factors of gold futures price by the Granger test and make the conclusion that future price could guide spot price. The theory support of this paper is the research of future price abroad influence the one domestic. Gold futures launched timely perfect China's gold market system and price forming mechanism in China to seek the gold market in the world for gold in discourse right, which have the important meaning, gold enterprise competitive in international competion. With the dollar's decline and global inflation pressure increases, gold and gold futures investment significance to become more important, while gold and gold futures in portfolio is held decisive position.Thus we stress on the gold future investment strategies base on the characteristic of gold futures in the world, including portfolio of gold spots and futures, according to taking basis risk and problems which occurred in the process of the actual transaction. In September 2007, the SFC approved the Shanghai futures exchange, China listed gold futures gold futures listed has an important meaning, marks I futures markets has taken huge structural changes.The investment market of gold futures of China have a very broad prospect. Gold has a strong metal and commodity property so that Gold futures which is a global real sense of commodities listed in initial adumbrative strong demonstration and importance. Gold futures have properties different from other commodity futures variety, such as Financial, commodities and metal attributes. For enterprises and ordinary investors who use futures market hedging, China launched gold futures has great significance to avoid price risk hedging.Gold futures delivery is not discussed in this paper.