Gold Futures Trading: GC and MGC Specs, What Moves Gold and How to Size It
GC and MGC specs, the forces that tend to move gold, when it trades most actively, and sizing math that adapts to volatility.
Gold futures trade as GC, 100 troy ounces with a $10 tick, and MGC, the 10 ounce micro with a $1 tick. Gold tends to react to US interest rates, the dollar and risk appetite. It can move several dollars an ounce in minutes. So size every trade from your stop in dollars per ounce, then check it against your daily loss limit.
Key takeaways
- A $1 move in gold is $100 on one GC and $10 on one MGC.
- Real interest rates and the US dollar are the most watched drivers, but no relationship holds every day.
- Gold trades nearly around the clock, and the London morning and US data often bring the biggest moves.
- On smaller prop accounts, MGC usually fits a sensible gold stop far better than GC.
GC and MGC contract basics
| Detail | GC | MGC |
|---|---|---|
| Size | 100 troy ounces | 10 troy ounces |
| Tick size | $0.10 per ounce | $0.10 per ounce |
| Tick value | $10 | $1 |
| Value of a $1 move | $100 | $10 |
| Venue | COMEX | COMEX |
Example figures: with gold at $4,000 an ounce, one GC controls $400,000 of metal and one MGC controls $40,000. A $15 move is 150 ticks: $1,500 on GC and $150 on MGC.
Gold lists many months, but most volume sits in February, April, June, August, October and December. GC is physically delivered, so traders roll before first notice day, which falls at the end of the month before the delivery month. Volume often moves to the next active month a few days before that. See futures rollover explained for how the roll affects charts.
What moves gold?
Gold pays no interest, so its appeal depends on what else investors could earn and what they fear. In general terms, these forces matter most:
- Real interest rates: when inflation adjusted yields rise, holding gold costs more in lost income, which tends to weigh on price. Falling real yields tend to help.
- The US dollar: gold is priced in dollars. A stronger dollar makes it dearer for buyers using other currencies, and often coincides with weaker gold.
- Federal Reserve expectations: CPI, payrolls and Fed decisions shift rate expectations, so gold often moves hard at 8:30am releases and at 2pm on Fed days.
- Risk and safe haven demand: wars, financial stress and political shocks can lift gold quickly.
- Longer term demand: central bank buying, fund flows and physical demand shape the bigger trend more than any single day.
None of these is a fixed rule. Gold and the dollar sometimes rise together, and gold can rally while real yields climb. For intraday trading, treat these drivers as reasons the market may move at a given time, not as signals in themselves.
Gold trading sessions
Gold futures trade on Globex from Sunday 6pm to Friday 5pm New York time, with a daily break from 5pm to 6pm. Activity shifts across the day as each region comes online.
| Window (New York time) | What to expect |
|---|---|
| Evening | Asian hours. Steady trading, often in a narrower range. |
| About 3am onward | London opens. Gold is a major London market, and activity often rises. |
| 8:30am | US data releases. Sharp moves are common on CPI and payroll days. |
| Morning to about 1:30pm | The core US session, ending with the daily settlement around 1:30pm. |
| Afternoon | Usually quieter, apart from 2pm on Fed days. |
The London benchmark gold price is also set in auctions at 10:30am and 3pm London time. These can bring short bursts of activity. Gold can also make large moves overnight. Check the overnight range before you trade the US morning. More on schedules in futures trading hours.
Sizing math for GC and MGC
Gold stops are easiest to think about in dollars per ounce. Each $1 is 10 ticks.
Loss per contract = stop in dollars per ounce × ounces per contract
Example figures: your risk per trade is $250, and you set stops at 1.5 times the 5 minute ATR.
- Normal morning: the 5 minute ATR is $2.00, so your stop is $3.00. One GC loses $3.00 × 100 = $300, which is over budget. One MGC loses $3.00 × 10 = $30. $250 ÷ $30 = 8.33, so you trade 8 MGC and risk $240.
- After a CPI release: the 5 minute ATR jumps to $5.00, so your stop is $7.50. One MGC loses $75. $250 ÷ $75 = 3.33, so you trade 3 MGC and risk $225. One GC would lose $750.
The dollar risk stays close to the plan while the position shrinks as volatility rises. That is the point. If you need GC to make a trade worthwhile, your risk budget is probably too small for full size gold. The ATR method is covered in stop loss placement with ATR.
Gold can gap through stops on news. Leave part of the daily loss limit unused as a slippage buffer.
How this fits prop firm rules
- Daily loss limit: one GC with a $7.50 stop uses $750, most of a $1,000 limit. Use MGC until your room is large.
- News rules: gold moves on CPI, payrolls and Fed decisions. Some firms restrict trading around these releases.
- Trailing drawdown: fast spikes can lift an intraday trailing floor before price reverses.
- Contract caps: GC usually counts as a full size contract, and some firms set separate limits for metals.
- Overnight and weekend holds: many accounts require you to be flat at the day close, which also protects you from overnight gaps.
Rules vary by firm; check each firm’s page on PropFirmXchange in the prop firm directory. To find an account that allows metals at your budget, use find an account.
Questions traders ask
How much is one tick on gold futures?
$10 on GC and $1 on MGC. One tick is $0.10 per ounce on both contracts.
What is the best time to trade gold futures?
Liquidity is usually deepest from the London morning through the US session to the 1:30pm settlement. Pick one window and learn how gold behaves in it.
Is gold less volatile than Nasdaq futures?
It depends on the period. Compare the ATR of each in dollars per contract on the same time frame, and size each from its own stop.
Trading gold futures carries a high risk of loss, and fast moves can push fills past your stop. Most prop firm accounts are simulated. Nothing here is financial advice.