One use for futures markets is “price discovery,” that is, the futures price mirrors the current consensus of the future price of the commodity. The current price of gold is

$950 but you expect the price to rise to $1,000. If the futures price were $990, what would you do? If your expectation is fulfilled, what is your profit? If the futures price were $1,018, what would you do? What futures price will cause you to take no action?

Why?