Gold Trading.
With a forex platform, it has become very easy to invest in gold electronically using the same mechanism that one employs to invest in currency pairs.
Almost all platforms today offer the pair XAU/USD, and the only restriction is that gold can only be traded with respect to the US dollar, because gold trading is priced in US dollars as is trading in oil.
The Best Gold Brokers + Trading Platforms.
Free forex signals + market research Online education and webinars Fee free withdrawals and deposits.
The leading Social Trading platform with 4.5m traders Follow other traders or be a leader and earn Personal service and VIP perks.
Trusted, regulated broker with 10 yrs experience Multi award winning company Segregated accounts with leading banks.
+50% Deposit Bonus (ex-EU only)
Free Guaranteed Stop Loss Segregated funds at top tier banks Fixed spreads & negative balance protection.
+ Cash rebates on trades.
World class trading platform Expert market analysis FCA Regulated and traded on the LSE.
Choice of four professional trading platforms Trusted & Secure: FCA authorised and regulated Choice of Forex, CFDs, Spread Betting and Binary Options.
1st month commission bonus.
Low cost trading with tight, fixed spreads Loyalty rewards: Earn cashback as you trade Choose Forex, CFDs or spread betting.
+ Up to £6000 on deposits.
No commissions and low spreads Advanced trading tools Minimal account fees.
+100% on every deposit.
Split second execution No requotes Range of accounts.
+55% Deposit Bonus.
'Asia's top broker' Wide choice of leverage options.
+40% Deposit Bonus.
Generous Cashback Rewards for every trade Leverage the wisdom of the crowds to inform your positions Fast, simple signup.
Instant fund withdrawals - no commissions Tight spreads from 0.1 points Unlimited leverage.
24 hr Live Support Fully Regulated and Licenced EU Broker User - friendly trading platform.
8 Trading Platforms Spreads from 0.1 Pips $0 fees on deposits.
Deposit Bonus + Cashback.
Trusted by 100,000s of traders Fully licensed in the EU by CySec Tight spreads and fast withdrawals.
0.0 pip spread pro accounts Instant deposit.
For example, some exchanges do limit the amount of time one can remain in a trade and the trading times for the use of this pair according to some limitations imposed by the London Gold Exchange, which is the where the world’s gold gets traded .
But, increasingly, it’s possible to trade the pair just like any other, 24 hours a day. Check your platform for details.
As with all trades you make on the platform, online trading with gold does not require the “ physical ” purchase or sale of the real material. You do not purchase gold that you can hold.
You do make use of the international Over-the-Counter exchange created by the London Gold market, and the clearing and settlement facilities they make available, but you will not be aware of all this . You will clear your trades just as you always do.
Trading in gold is a question of understanding the sentiment on the gold market. The price of gold is volatile; it goes up and down according to how investors feel .
For example, when the crisis started in Ukraine, traders became frightened, fled to gold, and the price went up 2.3 per cent to US$1,351.6 an ounce .
That happens whenever there is a big catastrophe, a war, or anything that frightens investors, and they take their funds out of stocks and bonds and buy gold, either gold funds, or the metal itself .
The financial crisis of 2007-2009 made investors nervous and many bought physical gold, pushing the price way up to over USD 2000 an ounce for a while. Then the clouds dissipated over the global economy, and investors pulled their money back out of gold into more productive investments. The price of gold went back down to nearly USD 1000 an ounce in 2013.
And this is the problem with investing in gold. As the great guru of American investing Warren Buffett once said:
“Why invest in gold? You put it in your safe. It sits there and does nothing. If you buy an ounce of gold today and you hold it at hundred years, you can go to it every day and fondle it and a hundred years from now, you’ll have one ounce of gold and it won’t have done anything for you in between. You buy 100 acres of farm land and it will produce for you every year. You could buy the Dow Jones Industrial Average for 66 at the start of 1900. At the end of the century, it was 11,400, and you would also have been given dividends for a hundred years. So a decent productive asset will kill an unproductive asset.”
This is, of course, an extreme view from an active investor, but it is true that performing investments are easier to judge than gold . There is, of course, some demand for gold for making jewellery, and, in China and India, consumers consider buying gold as an absolute necessity, an essential part of domestic security. Consumers in China and India show the greatest demand for gold in the world, and when they buy, they do have a certain effect on the price of the metal.
But you can see how this plays out in a report from the World Gold Council . Consumer demand for gold rose 21 percent in 2013 as appetite for jewellery, small bars and coins hit an historic high of 3,863.5 tons. This was largely on the back of demand from China and India. Jewellery demand was at its highest since the onset of the financial crisis in 2008, coming in at 2,209.5 tons. This showed an increase of 17 percent from the previous year. The demand was fuelled in part by the fact that the price of gold was lower in 2013 than in the previous year.
And investors -- still worried about security -- kept up demand for bars and coins, which surged to an all-time high of 1,654 tons, valued at USD 75.0 billion.
With all of that, overall demand for gold dropped 15 percent in 2013. Investors were, in general, not so ‘risk-off’ as the financial world calls it, and so they put their money back into stocks and bonds.
Gold performed worse than almost any other asset, despite all the demand from consumers in China and India. Nothing could make it plainer: It’s very difficult to know what gold is going to do and when. The one time you are likely to be sure about investing in gold is when all hell breaks loose: a war, an earthquake, a financial crisis. Whatever shakes people up makes gold go up.
In other times, it’s probably wise to steer clear of gold. Of course, there is a forecast. Nomura Securities has raised its 2014 gold price forecast to USD 1,335 per ounce for 2014 from the previous USD 1,138 per ounce as, the Nomura analyst explains,
“ the speed of last year’s price decline brings forward the start of the next cycle .”
“Gold appears set to recover like a phoenix regenerating from its ashes,” the Nomura analyst forecasts.
Several major investment banks, including Japan’s Nomura, Switzerland’s UBS and London’s RBC Capital Markets have all recently raised their gold price forecasts. UBS now expects the price of gold to average USD1,300 per ounce this year while RBC has set an average of USD 1,400 per ounce. For 2015, Nomura predicts a gold price of USD 1,460 per ounce.
Gold has already risen by around 12 percent this year, partly as a result of the US Federal Reserve announcing that it would slow down its policy of “ quantitative easing ,” or intervention in bond markets and easy liquidity .
For the day trader, in the midst of all this uncertainty, a technical approach to gold/dollar is perhaps the safest. Short-term changes in the XAU/USD pair are perhaps best understood in terms of pullbacks and breakouts.
Certainly one should keep an eye on fundamentals, but watch resistance and support floor carefully as well .
Featured Brokers.
Related Articles.
Technical Analysis in Forex.
Fundamental Analysis.
Forex Day Trading.
CFD Trading.
Crude Oil Trading.
Demo Trading In Forex.
Margin Trading Explained.
Easy Markets.
LCG (London Capital Group)
Featured Brokers.
TOP FOREX BONUSES.
Risk Warning.
Your capital is at risk. Trading in Forex and Contracts for Difference (CFDs) is highly speculative and involves a significant risk of loss. The information contained in this publication is not intended as an offer or solicitation for the purchase or sale of any financial instrument. This website is provided for informational purposes only and in no way constitutes financial advice. A featured listing does not constitute a recommendation or endorsement.
About ForexTradingpany.
Forex Tradingpany was established to provide global traders a deep and insightful source of information on forex trading, its key strategies and indicators. With guides for everyone from beginner traders in Bangladesh to advanced strategists in Hong Kong we want the world trading community to benefit from our in-depth broker reviews, features, and commentary. We list the world's top regulated and authorised brokers suitable for a global audience.
We aim to think global, act local with our website, so that whether you're in Asia, Europe or Africa you can gain from our content on the world's biggest market.
Gold Vs Forex.
28th October 2015.
Gold has held its own as a responsible investment option for centuries – but how does it stack up against the profit potential of trading currency on the Forex market?
Gold is a classic investment. It has provided a medium for wealth preservation for centuries, and it is now easily tradeable through gold ETFs. Gold ETFs enable the investor to purchase gold and net the benefits of the precious metal, while foregoing the challenges related to purchasing and housing physical gold. ETFs essentially act as a mutual fund for gold, with one unit of purchase representing, in most cases, 1 gram of gold. These units can be traded on the stock exchange just as you would trade a single share of a company, and transactions are generally managed in the same manner as a stock purchase.
Forex trading, on the other hand, involves a trader making calculated investments and speculations as to the relative valuation of a pair of specific currencies. For example, a trader on the Forex markets may feel that the value of the US dollar is poised to increase in relation to the Euro. Through a currency broker, the trader would then enact a currency swap and would then recognise a profit if the value of the dollar does in fact rise. Though both of these investment opportunities present the savvy trader with an ability to make money in both the short and long-term, they are two unique options that each offer noteworthy pros and cons. Let us explore some of the features and drawbacks to investing in gold versus Forex.
Intrinsic value : Gold, like other precious and scarce resources on the planet, has intrinsic value, meaning that there will always be somebody who wants to buy it, though not necessarily at the price you desire. Whilst physical gold can often be difficult to sell, gold ETFs are easier to negotiate for the majority of investors. Although trading currencies on the Forex market is a little bit different to trading gold, currency also has intrinsic value, and is even easier to trade through the Forex marketplace than gold.
24 hour marketplace? One distinct advantage enjoyed by currency traders that cannot be claimed by those investing in gold is access to a trading marketplace that is available 24 hours a day, 5 days a week. Forex traders can login at 2 o’clock in the morning and initiate a swap, and they can take advantage of after-hours news stories and foreign market activities to make immediate adjustments to their investment portfolio.
Leverage : One key benefit afforded by Forex trading is an ability to invest using high levels of leverage. Whilst this is something that should be approached with a certain degree of caution, leverage can enable a new or seasoned investor to make significant trades without a large upfront investment. Many Forex trading groups enable leverage ratios of up to 500 to 1, meaning that a $1000 investment can purchase $500,000 worth of currency. While this is a good thing for many traders, it is important to keep in mind that even small fluctuations in currency valuation can cause serious movements within an individual’s portfolio. You simply will not see this type of leverage potential available with gold investing.
Risk management : Many investment professionals consider gold to be one of the most stable and reliable media on the market. Whilst gold is certainly a standard-bearer when it comes to risk mitigation and consistent, albeit modest, returns on an investment, trading in the Forex marketplace provides a level of control that acts as a natural hedge against risk. Most online trading platforms require the trader to establish a margin call figure that will prevent a potential loss from wiping out the funds in a related investment account. This, coupled with the quick reaction times that are the hallmark of Forex trading, creates a controlled environment that naturally manages risk.
Gold is generally considered to be one of the safest investments on the market today. It is a natural financial defence against market volatility, and the fact that it is a scarce resource with universal appeal makes it undeniably attractive for any investor who wants to minimise risk and maximise return on investment. Forex, however, is a world of its own. Traders who have learned how to maximise the currency marketplace have shown that incredible wealth can be created in a short amount of time if a few key processes are put into place. In the end, there is no right answer when determining if gold or currency exchange makes a better investment. Each individual investor must weigh up the pros and cons of all of the investment opportunities on the market today in order to make an informed and intelligent decision. That said, countless investors have made significant profits in a short period of time by partnering with a reliable and reputable trading group specialising in the Forex marketplace.
Begin trading today! Create an account by completing our form.
Contracts for Difference (CFDs) and margined FX are leveraged products which carry a high degree of risk to your capital. Prices may move rapidly against you and may result in you losing more than your initial deposit. CFDs and FX may not be suitable for all investors and you should fully understand the risks involved before opening an account. Please read the Risk Warning Notice on our website.
English Footer.
London Office.
1008 Index Tower,
Al Sa'ada Street,
Dubai International Financial Centre,
Sharq - Mazaya Tower 02 - 10th floor.
Unit 2102A, Level 21,
60 Wyndham Street,
Central, Hong Kong.
One Financial Markets is the trading name of C B Financial Services Ltd, a company registered in England with company number 6050593. C B Financial Services Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Services Board in South Africa (with FSP number 45784).
One Financial Markets (DIFC) Ltd is a company registered in the Dubai International Financial Centre at Index Tower, Level 10, Office 1008, PO Box 507147, Dubai, United Arab Emirates. One Financial Markets (DIFC) Ltd is regulated by the Dubai Financial Services Authority.
One Financial Markets (Asia) Ltd is an approved introducing agent of One Financial Markets, authorised and regulated by the Hong Kong Securities and Futures Commission (with SFC CE No BFZ621).
The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
onefinancialmarkets is owned and operated by C B Financial Services Ltd.
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :
Best FSA Regulated Broker.
Saudi Money Expo.
Saudi Money Expo.
Best Broker - Online Trading.
Best Institutional Broker.
Saudi Money Expo.
Saudi Money Expo.
Broker of the Year.
Online Trading – Middle East.
We accept the following payment methods:
Contracts for Difference (CFDs) and margined FX are leveraged products which carry a high degree of risk to your capital. Prices may move rapidly against you and may result in you losing more than your initial deposit. CFDs and FX may not be suitable for all investors and you should fully understand the risks involved before opening an account.
Should You Trade Forex Or Stocks?
Today's investors and active traders have access to a growing number of trading instruments, from tried-and-true blue chips and industrials, to the fast-paced futures and forex markets. Deciding which of these markets to trade can be complicated, and many factors need to be considered in order to make the best choice.
The most important element may be the trader's or investor's risk tolerance and trading style. For example, buy-and-hold investors are often more suited to participating in the stock market, while short-term traders, including swing, day and scalp traders, may prefer markets where price volatility is more pronounced. In this article, we'll compare investing in the forex market to buying into blue chip stocks, indexes and industrials. (Learn about the forex market and get to know some beginner trading strategies; check out Forex Trading: A Beginner's Guide .)
The foreign exchange market is the world's largest financial market, accounting for more than $4 trillion in average traded value each day as of 2011. Many traders are attracted to the forex market because of its high liquidity, around-the-clock trading and the amount of leverage that is afforded to participants.
Blue chips, on the other hand, are stocks from well-established and financially sound companies. These stocks are generally able to operate profitably during challenging economic conditions, and have a history of paying dividends. Blue chips are generally considered to be less volatile than many other investments, and are often used to provide steady growth potential to investors' portfolios.
Want to start trading stocks? Check out which online broker offers the best tools here.
Volatility is a measure of short-term price fluctuations. While some traders, particularly short-term and day traders, rely on volatility in order to profit from quick price swings in the market, other traders are more comfortable with less volatile and less risky investments. As such, many short-term traders are attracted to the forex markets, while buy-and-hold investors may prefer the stability offered by blue chips.
Leverage is another consideration. In the United States, investors generally have access to 2:1 leverage for stocks. The forex market offers a substantially higher leverage of up to 50:1, and in parts of the world even higher leverage is available. Is all this leverage a good thing? Not necessarily. While it certainly provides the springboard to build equity with a very small investment - forex accounts can be opened with as little as $100 - leverage can just as easily destroy a trading account. (For more insight, see Forex Leverage: A Double-Edged Sword .)
Another consideration in choosing a trading instrument is the time period that each is traded. Trading sessions for stocks are limited to exchange hours, generally 9:30am to 4pm Eastern Standard Time, Monday through Friday with the exception of market holidays. The forex market, on the other hand, remains active round-the-clock from 5pm EST Sunday, through 5pm EST Friday, opening in Sydney, then traveling around the world to Tokyo, London and New York. The flexibility to trade during U. S. Asian and European markets, with good liquidity virtually any time of day, is an added bonus to traders whose schedules would otherwise limit their trading activity. (Just because the forex market trades 24 hours a day doesn't mean you have to. See How To Set A Forex Trading Schedule .)
Stock market indexes are a combination of similar stocks, which can be used as a benchmark for a particular portfolio or the broad market. In the U. S. financial markets, major indexes include the Dow Jones Industrial Average (DJIA), the Nasdaq Composite Index, the Standard & Poor's 500 Index (S&P 500) and the Russell 2000. The indexes provide traders and investors with an important method of gauging the movement of the overall market.
A range of products provide traders and investors broad market exposure through stock market indexes. Exchange-traded funds (ETFs) based on stock market indexes, such as S&P Depository Receipts (SPY) and the Nasdaq-100 (QQQQ), are widely traded. Stock index futures and e-mini index futures are other popular instruments based on the underlying indexes. The e-minis boast strong liquidity and have become favorites among short-term traders because of favorable average daily price ranges. In addition, the contract size is much more affordable than the full-sized stock index futures contracts. The e-minis, including the e-mini S&P 500, the e-mini Nasdaq 100, the e-mini Russell 2000 and the mini-sized Dow Futures are traded around the clock on all-electronic, transparent networks. (To learn more, check out Forex Minis Shrink Risk Exposure .)
The volatility and liquidity of the e-mini contracts is enjoyed by the many short-term traders who participate in stock market indexes. The major equity index futures trade at an average daily notional value of $145 billion, exceeding the combined traded dollar volume of the underlying 500 stocks. The average daily range in price movement of the e-mini contracts affords great opportunity for profiting from short-term market moves.
While the average daily traded value pales in comparison to that of the forex markets, the e-minis provide many of the same perks that are available to forex traders, including reliable liquidity, daily average price movement quotes that are conducive to short-term profits, and trading outside of regular U. S. market hours.
Futures traders can use large amounts of leverage similar to that available to forex traders. With futures, the leverage is referred to as margin, a mandatory deposit that can be used by a broker to cover account losses. Minimum margin requirements are set by the exchanges where the contracts are traded, and can be as little as 5% of the contract's value. Brokers may choose to require higher margin amounts. Like forex, then, futures traders have the ability to trade in large position sizes with a small investment, creating the opportunity to enjoy huge gains - or suffer devastating losses.
While trading does exist nearly around the clock for the electronically traded e-minis (trading ceases for about an hour a day to enable institutional investors to value their positions), the volume may be lower than the forex market, and liquidity during off-market hours could be a concern depending on the particular contract and time of day.
While outside the scope of this article, it should be noted that various trading instruments are treated differently at tax time. Short-term gains on futures contracts, for example, may be eligible for lower tax rates than short-term gains on stocks. In addition, active traders may be eligible to choose the mark-to-market (MTM) status for IRS purposes, which allows deductions for trading-related expenses, such as platform fees or education. In order to claim MTM status, the IRS expects trading to be the individual's primary business; IRS Publication 550 and Revenue Procedure 99-17 cover the basic guidelines on how to properly qualify as a trader for tax purposes. It is strongly recommended that traders and investors seek the advice and expertise of a qualified accountant or other tax specialist to most favorably manage investment activities and related tax liabilities. (Trading forex can make for a confusing time organizing your taxes. These simple steps will keep everything straight. Check out Forex Taxation Basics .)
The internet and electronic trading have opened the doors to active traders and investors around the world to participate in a growing variety of markets. The decision to trade stocks, forex or futures contracts is often based on risk tolerance, account size and convenience. If an active trader is not available during regular market hours to enter, exit or properly manage trades, stocks are not the best option. However, if an investor's market strategy is to buy and hold for the long term, generating steady growth and earning dividends, stocks are a practical choice. Regardless of which instrument(s) a trader or investor selects, the decision should be based on which is the best fit.
Gold Price Forecast and Analysis.
DailyForex analysts monitor the gold market regularly to bring you gold price predictions and gold market forecasts that can help you find the best positions in the gold market. Our gold forecast signals are good for both forex gold spot market traders and as well as for the long term gold investors in commodities market.
Watch as gold prices fluctuate based on technical analysis, global political developments and comprehensive market research in the gold market forecasts below. Learn how to purchase gold at the higher price in uptrend market and avoid losing money due to the wrong entry point. Our gold forecase provides you with the right signals at the right time.
Browse by category.
Forex Brokers.
Gold Price Forecast and Analysis.
Gold prices ended the week up $7.67 at $1255.35 an ounce, snapping a three-week losing streak, as a retreat in the dollar sparked some short-side profit taking.
Gold prices ended Thursday’s session down $2.14, weighed down by the dollar’s bounce on better-than-expected U. S. economic data.
Gold prices rose $11.51 on Wednesday, moving away from a four-and-a-half-month low reached earlier this week, as the U. S. dollar fell after core inflation data missed expectations and the Federal Reserve left the outlook on interest rates unchanged.
Gold prices ended a choppy, two-sided trading session slightly higher on Tuesday, with many investors in wait-and-see mode ahead of the Fed’s policy announcement.
Gold started the week under pressure as investors maintained their risk for appetite.
Gold ended the week down $25.52 at $1248.07 an ounce, recoding a third consecutive weekly loss, as investors continued to favor risky assets.
Gold prices dropped nearly 1.3% on Thursday to settle at their lowest level since July 21 as a broad selloff in commodities and a stronger dollar pulled the market down.
Gold prices ended Wednesday’s session down $2.89 an ounce as strength in the U. S. dollar and a recovery in stock markets weighed on the market.
Gold prices dropped $10.34 an ounce on Tuesday as a stronger U. S. dollar and technical selling pressure continued to weigh on the market.
Gold prices ended Monday’s session up $2.34 an ounce as turbulence in world stock markets whetted investors’ appetite for the relative safety of the precious metal.
Gold prices settled at $1279.89 an ounce on Friday, suffering a loss of 0.69% on the week but making a gain of 0.32% over the month.
Gold prices fell $9.14 an ounce on Thursday, weighed down by recent gains in stocks.
Gold prices closed at their lowest level in a week on Wednesday, under pressure from a stronger dollar rising stock markets.
Gold prices ended Tuesday’s session down $0.63 as the dollar strengthened on the back of the better-than-expected U. S. data.
Gold prices rose $5.39 an ounce on Monday, supported by a weaker U. S. dollar.
Free Forex Trading Courses.
Want to get in-depth lessons and instructional videos from Forex trading experts? Register for free at FX Academy, the first online interactive trading academy that offers courses on Technical Analysis, Trading Basics, Risk Management and more prepared exclusively by professional Forex traders.
Most Visited Forex Broker Reviews.
Stay Updated!
Also Available on.
Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly.
Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly.
Комментарии
Отправить комментарий