Gold Options are options contracts that utilize either physical gold or gold futures as its underlying asset. They are options contracts that are based off the price of gold. A gold option contract gives the holder the right, but not the obligation, to buy or sell the underlying asset of gold to the option holder at a pre-determined price. If a gold option is exercising, the underlying asset of the option is bought or sold at the pre-determined option price. If a gold option is not exercising, then the option expires worthless.A gold option, in the simplest terms, is a contract that gives you the right to buy or sell gold, but not both. Gold options are one of the popular ways to own gold that both allows you to own and trade the physical asset and hedge against its price risk. This blog post will examine the advantages, disadvantages and potential risks of trading gold options.Gold tends to be one of the most expensive assets when it comes to options trading. This is the case because, gold is considered to be a hedge against inflation. In addition, gold is also considered to be a safe haven during market volatility.
