Gold futures start trial trading today

China has released details on gold futures trading and the trial trading will start today, source reported.

Due to the rising interest to invest in gold and the wider fluctuation for gold prices, the Shanghai Futures Exchange will officially introduce gold futures on Jan. 9, 2008. The new product will offer financial institutions and investors a hedging option to avert risks.

For gold future trading, each contract represents one kilogram of gold. A minimum margin requirement was set at 7% of the contract value.

The Shanghai Futures Exchange started preparation for the launch of gold futures since September after it got the approval from the China Securities Regulatory Commission. It is reported that strict regulations will be adopted to reduce risks in gold future trading.

Gold prices rose and fluctuate heavily last year. Insiders believe the prices will still soar due to the weak U.S. dollar and uncertainties in the global economy.