JustChartsSpot Gold vs Gold Futures vs Gold ETFs: What’s the Difference?
Spot gold (XAU/USD) tracks the price for immediate delivery and is usually traded as a leveraged CFD — good for short-term trading but with overnight swap costs. Gold futures trade on exchanges like COMEX in fixed contract sizes with expiry dates. Gold ETFs hold physical bullion and trade like shares — usually the simplest way to invest long term, at a small annual fee.
Key facts
- Spot gold CFD
- leveraged, overnight swap, flexible size
- COMEX gold futures
- 100 oz (GC), 10 oz micro (MGC)
- Gold ETF
- physically backed, annual expense ratio
- Best for short-term trading
- spot CFDs or futures
- Best for long-term holding
- ETFs or physical gold
Comparison
| Spot gold (CFD) | Gold futures | Gold ETF | |
|---|---|---|---|
| What you own | A contract with your broker | An exchange contract | Shares in a fund holding bullion |
| Leverage | Yes (retail caps e.g. 1:20) | Yes (exchange margin) | None by default |
| Size | From 0.01 lot (1 oz) | 100 oz, 10 oz, or 1 oz contracts | Any number of shares |
| Holding cost | Daily swap | Roll costs at expiry | Annual expense ratio |
| Expiry | None | Monthly contracts | None |
| Trading hours | ~23 hours a day | ~23 hours a day | Stock exchange hours |
Spot gold (XAU/USD)
Spot gold is the price for immediate settlement, quoted in dollars per troy ounce. Retail traders usually access it through CFDs: you can go long or short in small sizes with leverage, but you pay a swap each night, which makes CFDs costly to hold for months.
Gold futures
COMEX gold futures (symbol GC) are 100-ounce contracts; micro gold futures (MGC) are 10 ounces, and there are 1-ounce contracts too. Futures are centrally cleared with transparent volume, but they expire, so long-term holders must “roll” into the next contract. Futures usually trade slightly above spot because of interest costs (contango).
Gold ETFs
Physically backed ETFs hold allocated gold bars in vaults; each share represents a fraction of an ounce. The largest, such as SPDR Gold Shares (GLD) and iShares Gold Trust (IAU), charge annual expense ratios of a fraction of a percent. There is no leverage or swap, which makes ETFs the usual choice for long-term investors using a normal brokerage account.
Which should you choose?
- Day or swing trading gold: spot CFDs or futures — see 1 lot of gold and gold trading hours.
- Holding for years: ETFs or physical bullion avoid swap and roll costs.
- Owning metal you can touch: physical bars and coins, with dealer premiums and storage to consider.
Frequently asked questions
Is XAU/USD the same as gold futures?
No. XAU/USD tracks the spot price for immediate delivery; futures are exchange contracts for a future date and usually trade slightly above spot. They move almost identically day to day.
What is the cheapest way to hold gold long term?
For most investors, a low-cost physically backed gold ETF, because there is no leverage, swap or futures roll — only a small annual fee.
Why do gold futures trade above spot?
Because holding gold until the future date costs money (interest and storage), futures normally trade at a premium to spot, a situation called contango.
Put it into practice
Live charts, an economic calendar and trading calculators — free with a JustCharts account.
Open the live gold chartThis article is for education only and is not financial advice. Trading leveraged products carries a high risk of losing money. Contract sizes, trading hours and leverage limits vary by broker and country — always check your own broker’s specifications.