Is Balancing EUR/USD with GOLD/USD a good idea?

Hi all,

I am trying to diversify my investments in EUR/USD but i dont want to make it with another pairs.
I am thinking if Gold/USD would be a good idea.
The main idea is to avoid having a margin call due to huge slippage, like we saw in CHF pairs in Jan 2015.

What do you think ?

What do you mean by diversify? You’re looking to hedge your position?

Give us some more info?

seems he wants to hedge but unsure he should because gold usd and gold euro have very different performance.

My goal is to not be caught in a “swiss-like” event.
I am looking an alternative to EUR/USD that doesnt suffer the same pressure . Since all currencies are, more or less, inter-connected, i was thinking of Gold or Oil or Silver…
What do you recommend ?

The closest thing to a Swiss like event was Draghi’s speech back in early December (or late November?) and that wasn’t even that bad. Just have a big margin and don’t over leverage.

This may be what you are looking for. Currensee | OANDA fxTrade Europe

You can use other currency pairs to reduce exposure by the way.

Very good point of view, objective thinking, it deserves attention.

Hello Zemanel,
EURUSD is a very interesting pair and i closely watch this pair. actually the correlation between euro and dollar is very high and the volatility is also extreme in the pair. in dollar index euro constitutes around 60% so opposite moves in both the currencies is of no wonder. while gold, movements in that commodity is also highly related to moves in dollar index so in my view you cannot completely hedge your euro position with gold but you can partially hedge its say like 50 or 60% of your positions.

you can also make the portfolio to completely hedge your positions in Euro for that matter