As one of the oldest forms of money, people instinctually want to trade gold. Learn the different types of gold trading possible and what moves the gold market.
- The Value of GoldHow do you trade gold for beginners?
- How do you trade gold for beginners?
- Different ways to invest in gold
- Spot Gold | Gold futures | Gold mining stocks | Gold ETFs
- What affects the price of gold?
- How do you trade gold successfully?
The value of Gold
Today, gold is used as jewellery, an investment or even in industries like medicine and electronics. However, for a long time, the precious metal has been used as currency.
Gold has always been seen as attractive in colour and brightness (its unique shine), and it is almost indestructible as well.
Seen as a store of value, many traders gravitate towards the precious metal because it is a physical product that exists in the world and not just numbers on a computer. Gold is also not controlled by central banks or monetary policy, meaning that it will always hold intrinsic value, unlike currencies, which could become almost worthless in certain economic environments.
How do you trade gold for beginners?
For beginner traders looking to buy and sell gold as a regular asset in their portfolio, different gold trading strategies and assets will be needed. Read through this section to learn the basics steps to start trading gold.
- Find a suitable broker – Gold is available on most trading platforms. signal expert global offers a variety of trading instruments, which means traders can trade currencies, crypto and commodities all in one place. Simple sign up for a live trading account. If traders wish to keep their gold trading on a separate trading account, they will always have the option to create a sub-account where they could only trade Gold.
- Choose which way you want to trade gold – Before traders start trading gold, it is important that they understand the differences between the two gold products offered as CFDs. The spot CFD generally has a lower spread than the futures CFD, but is subject to a daily swap charge. The futures CFD has a higher spread than the spot CFD, but no daily swaps are charged (instead, a rollover will apply upon expiry of the futures contract).
- Start testing a trading strategy by trading gold – Traders might prefer to do this initially on a demo account. This is an important step as it will give them insights whether their strategy is compatible with gold or not. If they are using fundamental analysis, they should follow news & events that are relevant to gold, and learn about the correlation of the precious metals to other asset classes.
- Open your first gold trade – Once traders are ready, and have the MT4 platform installed, they can find the spot product under the ticker “XAU/USD” (or XAU/xxx for the other currency pairs) and the futures CFD under the ticker “Gold.fs”.
