Research on Hedging Strategies in Gold Futures Market

Abstract

Since the ratio of gold to oil and gold to silver has an important impact on the financial market, its periodic changes will affect the trading of gold, so the trading mode and strategy of gold as futures must be analyzed and judged as an important conclusion, to use the correct strategy for trading. In order to obtain the most accurate way of gold trading, the knowledge of time series was used in statistics to analyze from the perspective of ratio historical data, to obtain the cyclical data of ratio, and finally summarize a set of strategies suitable for gold trading through the method of futures trading mode in finance. The findings showed that whether "Gold/Oil Ratio" or "Gold/Silver Ratio" both have a certain periodicity. There are no permanent boom and downturns in the futures market. When there is a market surge, the price will fall back to normal, and vice versa. Finally, this study provides an effective hedging strategy in gold futures market.