How to trade gold in financial markets?
Many modern traders are interested in how to trade in gold. This is a perfectly natural question because the value of precious metal moves along with global trends, which makes the long-term trade very promising. In addition, gold is very resistant to various economic shocks, and therefore, to buy and sell it to earn money can be very calm.
At the same time, gold trading in Forex has its own peculiarities. They should be known in order to regularly extract income from fluctuations in its value, which is in inverse proportion to the US dollar. To work with this precious metal on Forex, you need to choose a pair of xau / usd in the trading terminal.
Before you trade gold, you need to know where it’s best to do it. Actually, gold as a trading instrument is used on all major stock exchanges, although the largest centers for understandable reasons are New York and London. The largest and oldest market, where this precious metal is traded directly as a commodity, is the last one, that is, London. Since 12.09.1919 here set a fixed price for gold, which is used by all traders of the planet and major players: national banks, consumers, mining companies and so on.
In turn, New York will be more interested in those who prefer to trade gold futures, which are actively bought and sold on NYMEX (the name of the New York Mercantile Exchange). In addition to New York and London, you can also pay attention to Tokyo, Zurich, Hong Kong and Sydney.
When trading in precious metals, you can use any tactics and strategies. The choice of the most suitable one should be done in accordance with specific goals and objectives. However, the most popular are “lazy” long-term strategies for following the trend and short-term strategies based on fundamental forecasts. To work with gold on Forex it is better to choose daily charts, where the signals will be very accurate.