Apiary Fund Blog

How to Trade Gold in Forex

[fa icon="calendar"] Dec 13, 2019 6:00:00 AM / by Brigette Dumas

First, let’s talk about why Forex traders are finding trading gold so appealing. The value of gold varies from time to time because it trades on public exchanges where the price is figured out through supply and demand. Gold has been treasured by people all over the world for its endless glitter and flexibility. Gold is valued by many traders all over because it’s thought of as the ultimate refuge, proving to typically overcome the markets' many ups and downs, while sustaining its value in times of turmoil.

Sometimes, traders will use gold to hedge and expand their investments because gold will typically act differently to market conditions than other assets. As with any currency pair, Forex strategies, and/or instruments, there's no key system you can develop to trade gold successfully. However, many traders from other markets have found that many technical trading strategies they practice on other instruments can easily be moulded to fit the gold market, especially given gold's movement, often forming long-lasting trends.

If you're a short-term trader, usually the best way to profit from the common trends in gold is by using a moving average crossover strategy. If you haven’t heard of this strategy, don’t worry, let me explain. A moving average crossover strategy is when you would look at buying gold if a shorter-term moving average crossed above a longer-term average and you would want to sell gold if a shorter-term moving average crosses below the longer-term average.

If you find yourself more comfortable placing longer-term trades, then it's good to know that long-term traders and investors can shift their focus on the fundamentals that ultimately push golds price; such as interest rate levels. Longer-term traders may want to consider buying opportunities if confirmed earnings are below 1%, a level which has been supportive of gold prices in the past. On the other hand, history shows if confirmed earnings rise above 2%, investors may want to focus on selling trades. I hope this doesn’t come across as too confusing, because it was very confusing to me at first. That’s why as a Foreign exchange trader, especially a beginner trader, should always have a professional support system. My “support system” is The Apiary Fund, where I have guidance and coaching to navigate the entire Forex market. Having professional traders as coaches and partners in your trading community is so helpful to further your trading career and journey so you become profitable and ultimately end up enjoying trading. It’s a lot easier when you have support and people on your side that want you to succeed. I hope this article helps to explain trading gold better, or at least pique your interest in learning more!


Topics: trading tips, trading goals, long-term trading, short-term trading, gold, trading gold

Brigette Dumas

Written by Brigette Dumas

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