Options on gold are a type of financial instrument that gives the buyer the right, but not the obligation, to buy or sell gold at a specified price on or before a certain date. They are similar to options on stocks, but they are based on the price of gold rather than the price of a company’s shares.
Options on gold can be used to speculate on the price of gold, to hedge against risk, or to generate income. They are a versatile tool that can be used by both experienced and novice investors.