Can You Trade Gold?

Can You Trade Gold?

Written by: PaxForex analytics dept - Saturday, 11 February 2017 1 comments

Gold is the oldest precious metal known to man and for thousands of years it has been valued as a global currency, a Commodity, an investment and simply an object of beauty. Almost every exchange of any note around the globe has some type of gold investment, whether in stocks or futures or some other instrument based on a component of the gold market.

Whether bull or bear, the gold market offers high liquidity and excellent opportunities to profit in nearly all market environments due to its unique position within the world’s economic and political systems. While many folks choose to own the metal outright, speculating through the futures, equity and options markets offers incredible leverage with measured risk.

While prices for many physical commodities tend to revolve around supply-demand data, gold needs to be treated more like a financial market that responds to fear and anxiety. Gold prices typically move higher in times of crisis and panic. A stock market crash, an unexpected war or terror attacks can lead to a buying frenzy in gold because traders view it as a safe haven and preferable to own instead of paper assets.

In order to trade Gold online, you are not required to buy gold bullion or coins. All you need to do is predict whether the price of the yellow metal will rise or fall by a specified time. Thanks to technological developments and online platforms, it is now possible for even individuals to trade gold. You need to use derivative products such as binary options or Contract for Difference (CFD). On some of web-based forex platforms, you can trade gold against the USD or EUR as well. These online gold trading options allow you to speculate the upside or downside movement of the price of gold. 

If you are asking your self if you should trade Gold, you may want to get familiar with few steps about Gold trading. First, learn how three polarities impact the majority of gold buying and selling decisions. Second, familiarize yourself with the diverse crowds that focus on gold trading, hedging and ownership. Third, take time to analyze the long and short-term gold charts, with an eye on key price levels that may come into play. Finally, choose your venue for risk taking, focused on high liquidity and easy trade execution.