Do you want to know, is it favourable to trade in gold on Forex? Are there any effective strategies. Answers on these questions you can find in this article.
Gold is an instrument that appropriate for 2 types of trading:
Though the short-term operations with gold are possible, long-term investment is more profitable.
And the main advantage, thanks to which a trader can get a good income trading in gold, is this instrument’s volatility. It means that its exchange rate fluctuations are significant, and the difference in price in different periods of time can be big.
Gold has been always valuable, and it is barely possible, that this precious metal would ever leave the world market. The operations with gold are as popular with traders as orders with currency pairs.
There are 3 markets of gold, depending on the type of government regulation:
Furthermore, there is a black market in Bombay.
The events on these markets influence the price of gold.
Quotations on this precious metal on Forex are fixed 2 times a day in such time:
These periods of time are the most favourable for processing transactions with gold. But still, they can be processed in any time (day and night).
The value of 1 lot is 100 oz. Nowadays its price is about 130 thousand dollars. If you don’t have a bid sum of money, which you can invest in gold, choose brokers, that offer minimal lot from 0,01 and high leverage.
The price on this precious metal depends on several factors, such as:
The creation of a working strategy of getting income trading in gold is not an easy process. You should be guided by such rules:
In order to create an effective strategy, learn the level of success of gold minings, geopolitical and economical situation in the world, transactions, that are processed with real gold on London markets, and the situation on other markets that trade with futures on this precious metal.
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