Commodities
Is trading gold halal?
Read our methodology and editorial policy.
Summary
Spot gold purchase with immediate possession is permissible. CFDs on gold, gold futures, and any leveraged gold position with deferred settlement are impermissible.
The reasoning
Gold and silver are ribawi commodities — their exchange must be hand-to-hand. The IFA-OIC Resolution 53/4/6 explicitly requires immediate possession when buying gold.
Spot gold ETFs that are physically backed and where ownership transfers immediately are accepted by most contemporary scholars. Paper gold, CFDs, and futures fail the immediate possession requirement.
Conditions for permissibility
- Immediate settlement (T+0 or T+2 maximum)
- Physical gold or fully-backed allocated gold ETF
- No leverage, no deferred delivery
Scholar citations
"Spot only; deferred or paper gold impermissible"
Source: Resolution 53/4/6
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