I’m using FXCM platform and the only gold and silver pair is usd. Why is that?
Is it something to do with the federal reserve note? 1914 agreement or something?
Hello UK Forex,
Its because these are denominated in US dollars only. The international gold and silver instruments are denominated in US dollars only.
You didn’t answer my question. You simply told me that gold and silver can only be bought in USD. Which I already knew. I want to know why…
It’ll depend on your broker. Some only offer gold and silver in USD. My broker also offers them in EUR. I’ve seen a broker offer them in AUD. If you want to trade gold and silver with non-USD, you’ll have to look around for a broker who can provide what you’re looking for.
Cheers! That explains it
This is not the case with all the brokers. I trade with Finpro Trading and have Gold and Silver in EUR base.
Sir, the thing is that USD is a VEHICLE CURRENCY. A vehicle currency cannot be the domestic currency or the currency of the country with whom trade is being carried out. Vehicle currency is the one with worldwide following and USD is one such currency which is used by majority of the nations in the world. Hence, USD is most prefferred currency while trading in gold. Other than that, like other worthy members said, Gold can be traded in other currencies too.
USD is most widely used, so thats why the Gold is quoted in US Dollar. otherwise it can be bought and sold using other currencies too.
At the moment, it is not surprising to see European investors purchasing gold in response to their economic problems. Yes, there will be investors willing to purchase dollars as a safe-haven, which we find ironic bordering on foolish. On the other hand there will be some savvy Europeans willing to purchase gold and silver.
Based on your forum name, I’m guessing you are interested in trading gold versus the British Pound.
Note that gold and silver are priced internationally in US dollars, just as oil is priced in US dollars, with FXCM you can trade XAU/USD in a GBP-denominated trading account and your profits and losses are displayed real time in GBP.
[li]If you buy XAU/USD and sell GBP/USD, you are effectively going long gold versus the British Pound.
[/li][li]If you sell XAU/USD and buy GBP/USD, you are effectively going short gold versus the British Pound.
You might also like to know that FXCM offers spread betting accounts denominated in GBP which provide tax-free trading for UK residents.