Gold Trading
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Thread: Gold Trading

  1. #1
    Join Date
    Dec 2006
    Posts
    6

    Default Gold Trading

    How exactly does trading gold work? Why do people trade it and is there any particular time when you should be buying or selling it? Thanks for your help.

  2. #2
    Join Date
    Dec 2006
    Posts
    11
    I trade gold through CFDs. Gold is priced in US dollars so any weakness in the dollar causes the price to go up. So when the dollar goes down, it takes more dollars to buy gold which effectively raises the value of gold. They have an inverse relationship.

  3. #3
    Join Date
    Dec 2006
    Posts
    10
    People trade gold for the same reason they trade any other market…to make money. It’s still considered the security against paper currencies and against weak economies.

  4. #4
    Join Date
    Aug 2015
    Posts
    32
    As you can see the rout in world financial market, is not giving any investor to go long on any share. This is one reason when commodities are traded as safe haven. And from the commodites, the yellow metal holds a postion to roar high but this kind of movement is considered as to be on weak hands. Economicts and resrearchers do not find much of reason for the downfall in major indices. This cannot be the phase of recession. We all remeber the cricis of 2009, we are not even near to it. Its just crude and chinese havoc that have created the mess.
    This is just one way we study on gold trading, other way its physcial demand in India and china.
    Crude oil, its is also usded as its hedge.

  5. #5
    Join Date
    Sep 2012
    Posts
    414
    I have a rule that if USD raise, Gold drop and vice verse.

  6. #6
    Join Date
    Apr 2013
    Location
    Canada
    Posts
    1,851
    Hi,

    Here is an article where you can read about how gold affects the forex market. I think it can be helpful for you.
    https://paxforex.com/forex-blog/how-...e-forex-market

  7. #7
    Quote Originally Posted by dunny View Post
    I trade gold through CFDs. Gold is priced in US dollars so any weakness in the dollar causes the price to go up. So when the dollar goes down, it takes more dollars to buy gold which effectively raises the value of gold. They have an inverse relationship.
    This statement is not true 100% of the time, unless used in very specific context, so be careful.

    If you're looking simply @ how many dollars it takes to own gold on a single price chart, or using a single XAUUSD quote- then yes. But when you say "when the dollar goes down"- goes down relative to what? What are you using to value the USD? Are you focusing solely on the value of USD vs. XAU?

    Gold can be traded in many ways- Futures contracts, owning physical bullion, stock-market-based ETFs that track, Gold options-- to name a few. There are a plethora of ways to own the metal if you were interested, alongside a very low barrier to entry (in terms of price).

  8. #8
    Join Date
    Jul 2015
    Posts
    34
    The fall could be attributed to a rebound in equities in Wall Street and USD along with selling from China after the Lunar New Year holidays. A rebound in the US markets after an upbeat data buoyed the USD as well which weighed down on the precious metal’s safe haven appeal. I feel that the stability in the equities market will further slash the safe haven appeal of the yellow metal and would further lead to correction. The assets of SPDR Gold Trust, the top gold-backed exchange-traded fund, fell 0.71 percent to 710.95 tons on Friday proves that the trader takes no time in shifting to the equities as soon as they rebound. Technically, the immediate support can be seen at $1200 while resistance is seen at $1235.

  9. #9
    Join Date
    Mar 2015
    Posts
    517
    On weekly timeframe gold movemet already on resiatnce area I think, today on monday market which usually trend move weak but gold already occured strong bearish, and if we look on weekly timeframe , mght can ocured if trend gold will move vice versa.

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