Binary Traders Nonplussed by Fluid Gold Prices

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Trading Gold

Why trade gold?

Gold has long been valued by societies all over the world for its inherent lustre and malleability. Today, traders treasure gold (XAU/USD) because it is often viewed as the ultimate safe-haven asset, usually weathering market turbulence and retaining its value in periods of uncertainty. Traders also use gold to hedge against inflation and diversify their investments because gold often reacts differently to market stimuli than other assets.

Gold is often viewed as the

ultimate safe-haven asset,

usually weathering market

turbulence and retaining

its value in periods of

What influences the price of gold?

Interest rates: Historically, one of the most reliable determinants of gold’s price has been the level of real interest rates, or the interest rate less inflation. When real interest rates are low, investment alternatives like cash and bonds tend to provide a low or negative return, pushing investors to seek alternative ways to protect the value of their wealth. On the other hand, when real interest rates are high, strong returns are possible in cash and bonds and the appeal of holding a yellow metal with few industrial uses diminishes. One easy way to see a proxy for real interest rates in the United States, the world’s largest economy, is to look at the yield on Treasury Inflation Protected Securities (TIPS).

The U.S. dollar: One of the biggest points of contention for gold traders is on the true correlation between gold and the U.S. dollar. Because gold is priced in U.S. dollars, it would be logical to assume that the two assets are inversely correlated, meaning that the value of gold and the dollar move opposite to one another.

Unfortunately, this overly simplistic view of the correlation does not hold in all cases. Periods of financial stress can cause the U.S. dollar to rise and gold to spike rapidly. This is usually because traders will buy both gold and the U.S. dollar as safe-haven assets in these periods of uncertainty.

Gold Trading Strategies

As with any trading instrument, there is no single “best” way to trade gold. Many traders from other markets have found that the technical trading strategies they employ on other instruments can easily be adapted to the gold market, especially given gold’s tendency to form durable trends.

A Short-Term Strategy

For short-term traders, a classic way to try to profit from the frequent trends in gold is to use a moving average crossover strategy. In this strategy, a trader would look to buy gold if a shorter-term moving average crossed above a longer-term moving average and sell when the shorter-term moving average crosses below the longer-term average.

A 10/60 moving average crossover on the 1hr chart can be a strong combination for shorter-term traders. Historically, these settings have allowed traders to successfully trade the middle portion of a trend, though there is no guarantee of future performance. The chart below shows how this strategy could be applied in the gold market:

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Gold 1 Hour Chart

At point #1, the shorter-term 10-hour moving average crosses below the longer-term 60-period average, suggesting that traders should enter a sell trade as a bearish trend may be forming. The moving averages do not cross again until point #2 a few days later, after gold has trended down to the upper $1200s.

At point #2, the initial sell trade is closed for a solid gain and a new buy trade is triggered as the trend shifts back to the topside. After a brief consolidation, gold rallies back into the lower $1300s, and the trade is closed on the bearish moving average cross at point #3.

Like any methodology though, this strategy will produce losing trades as well. In this case, the big spike near point #4 caused the sell trade from #3 to be stopped out for a loss. It’s also important to note that the trade must be closed at the market price (near $1330) when the cross occurred, not the $1315 level where the two moving averages actually crossed.

A Long-Term Strategy

Longer-term position traders and investors can focus more on the fundamentals that drive gold’s price, such as the level of real interest rates. The chart below shows the relationship between gold prices and the yield on TIPS, a proxy for real interest rates in the United States.

The inverse correlation is obvious, but it looks like gold’s rally accelerated as real yields dropped below 1% in early 2009. Not surprisingly, a longer-term look at the relationship would reveal that gold prices generally fell in the late 1990s, which were characterized by real yields above the 1% threshold.

Gold Price vs. TIPS Yeild Since 2008

Therefore, longer-term traders may want to consider buy opportunities if real yields are below 1%, a level which has historically been supportive of gold prices. Conversely, if real yields rise above 2%, investors may want to focus more on sell trades.

Binary Traders Nonplussed by Fluid Gold Prices

Follow XAUUSD Following XAUUSD Unfollow XAUUSD

XAUUSD Chart

Ideas

Please support this idea with LIKE if you find it useful. Price formed a Descending Triangle and currently testing the support zone. If we have a confirmed breakout of the support zone then pattern will be confirmed and we can initiate a short position Thank you for reading this idea! Hope it’s been useful to you and some of us will turn it into.

Gold. The price strictly went according to my past schedule. I think the price will still reach the resistance line, but then it will go down. Having broken through the support line.

Please support this idea with LIKE if you find it useful. Situation is confusing with Gold, because we have a Cup & Handle and also a variation of Rising Wedge. Because of this we have two work with confirmed breakout of either Horizontal Resistance or Horizontal Support, also the Ichi Cloud. – In price breaks the Horizontal Resistance is broken then Rising.

Friends, please support my free works by clicking LIKE button. Reasons: – Price trades in Rising Wedge – Resistance level is 1700 $ – Support level 1640 $ – I think price may continue to grow from Support Level – But if price will break support level then we can open short – To open position only after setup which you personally trade – Always do your own.

Hi subscribers! The price of gold has ceased to be volatile, the price will be in a narrow range, it is assumed that the price will fall below the key level and reach the target at around 1,620,000. Good luck. If you liked this idea, please like and subscribe to my profile. This idea does not provide the financial advice.

Friends, please support my free works by clicking LIKE button. Reasons: – Support level 1640 $ – Price trades in Rising Wedge – Resistance level is 1700 $ – I think price may continue to grow at least to resistance level – To open position only after setup which you personally trade – Always do your own research before opening positions and always put SL If you.

Hello Traders , Gold has continued holding to its gains. as we can see upside is supported by ascending trendline and price is also trying to move higher and attempt to break above current resistance , We would like to stay long till price is supported by ascending trendline , look for potential long setups on retest of trendline. In these articles we post.

Looking at the Gold Spot (XAUUSD) chart I am getting the feeling that Gold can move higher. Right now resistance is being faced at $1649.65. If this level can be conquered, $1836 will be hit next. Failing to close above $1649.65 this week, will send Gold Spot lower. But looking at lasts week’s strong bounce (marked green space), it is likely that prices will.

X FORCE GLOBAL ANALYSIS: Gold has shown incredible bullish momentum, especially during hard times. As the Corona virus (COVID-19) remains to sweep European nations and the United States, governments around the world are announcing extreme quantitative easing policies. In this analysis, we take a look at the technicals fundamentals of Gold.

GOLD FOR WAVE ” C”

Expecting price hovering then can see continue upward move. ThankYou

Hi, today we are going to talk about gold and its current landscape. We can observe at this timeframe, a confluence of technical factors, that entail a setup which might drive this asset to a new movement. The details of our analysis are highlighted in the chart above. Want to know more about our trades and ideas? Join the Traders Heaven today. Thank you for.

XAUUSD idea long Defended level 1642 , formed another triagle , the price broke up. I expect growth.

I did mistake when labeled wave 1 as leading diagonal , so I repeated count the wave of Gold and sell zone seems on 1664 point

Hi traders, here is an Analysis for XAUUSD Prices are supported above 1640 also short term line support, we can expect prices to go and test the resistance which prices dropped and made a big move to the downside if prices will break 1700 and retest the buying zone I will look for a buy if the rules are met, currently am on the sideline Hey,�� Support this.

gold had made a strong push up and is at a strong resistance line and im expecting a fall to the support of the channel. This is very volatile plz be careful … plz share your thoughts.

Gold has formed a bullflag on the 4Hour chart weeklychart looks nice aswell could be a nice buy

MetaTrader 5

What is metals trading

Diversify your portfolio with some of the most popular commodities in the world including gold and silver.

Metals trading lets you speculate on the price movement of a particular metal asset in order to profit from the price difference when the asset value rises or falls.

Metal – a hard commodity

Metals are also known as “hard” commodities as they are natural resources that must be mined or extracted.

Metals are categorised into two types:

  • Industrial metals
    Industrial metals – also known as base metals – are abundant, but oxidise or corrode easily. Industrial metals feature heavily across a wide range of industrial and commercial applications, including electrical wiring, automobiles, and batteries.
  • Precious metals
    Precious metals are harder to come by and are more valuable than industrial metals. Because precious metals are softer and less reactive, they are widely used in jewellery, medical devices, and electronics.

Why you should trade precious metals with Binary.com

  • Competitive spreads
    Trade metals on competitive fixed and variable spreads.
  • Commission-free
    Pay no commission on all metal contracts.
  • Comprehensive
    Trade all four precious metals on one platform.

How to trade metals

Learn the basic concepts of trading metal pairs on our MetaTrader 5 platform.

When to buy and sell

When you are trading metals, you can choose to open a buy position (if you think that the price of an asset will rise) or a sell position (if you think that the price of an asset will fall).

Buy

In this case, you predict that the price will rise. This is also known as ‘going long’.

Sell

In this case, you predict that the price will fall. This is also known as ‘going short’.

Let’s use the XAU/USD (Gold vs US dollar) metal pair as an example.

If you decide to buy or ‘go long’ on the XAU/USD, you will profit if the price of the XAU/USD rises, and incur losses if the price falls.

If you decide to sell or ‘go short’ on XAU/USD, you will profit if the price of the XAU/USD falls, and incur losses if the price rises.

Factors that affect metal prices

Knowing when to buy and sell metals largely depends on how well you know the factors that influence market prices. The most common influencing factors are:

  • Supply – Decline or increase in supply
  • Demand – Driven by industrial and commercial applications, including new technological products or fashion trends
  • Market volatility – Political, economic, or social instability may lead to more volatile financial markets that affect the prices of certain metals

Keeping up with market news and trends in a certain sector can help you tremendously, especially if you’re just starting out.

How to calculate your profits and losses

Let’s use the XAU/USD metal pair again as an example.

Due to market volatility and gold’s reputation as a safe-haven asset, you predict that the price of gold will rise.

After you purchase one lot of XAU/USD at a price of USD 1,255.06, the price of gold increases and you decide to sell when it reaches USD 1,255.80. Your profit or loss comes down to the price difference multiplied by the total lots you purchased.

Your profit or loss is calculated as follows:

(Closing price – Opening price) x Lot units = Profit/Loss

(1,255.80 – 1,255.06) x 100 = USD 74

Please note that one lot is equivalent to 100 units, based on our contract specifications.

Metals margin policy

Margin allows you to trade on leverage – giving you the same level of market exposure using much less capital.

For example, if you wanted to purchase 100 units of a particular asset trading at USD 50 per unit through a traditional broker, it would cost you USD 5,000 for this transaction.

With leverage, you can purchase 100 units of the same asset at a fraction of the cost.

How to calculate margin

You can determine the required margin for our metal pairs by using the formula below:

For example, if you buy one lot of the XAU/USD pair at 300:1 leverage and a market price of USD 1,250.15, the margin required to purchase that one lot will be calculated as follows:

Without margin, purchasing one lot of the XAU/USD pair will cost you:

100 * 1250.15 = USD 125,015

Please note that one lot is equivalent to 100 units, based on our contract specifications.

What’s a margin call and how is it applied

Equity is the sum of your balance and floating profit and loss (PnL). Margin level is the ratio of equity to margin. When that ratio reaches a specified percentage (usually 100%), your account will be placed under margin call. This does not affect your ability to open new positions; it serves to alert you that your floating PnL is moving lower. However, it is recommended to add funds to your account in order to keep your positions open. Alternatively, you may close losing positions.

What’s a stop out level and how is it applied

If your margin level reaches an even lower level (usually 50%), it will reach the stop out level where it is unable to sustain an open position. This will lead to some, or all your open positions being forcibly closed (also known as “forced liquidation”).

When your account hits the forced liquidation level, your orders and positions are forcibly closed in the following sequence:

  1. We delete an order with the largest margin reserved
  2. If your margin level is still under the stop out level, your next order will be deleted. However, orders without margin requirements will not be deleted
  3. If your margin level is still under the stop out level, we will close an open position with the largest loss
  4. We will continue to close open positions until your margin level becomes higher than the stop out level

Metals contract specifications

Symbol Description Lot size Minimum volume Volume step
XAG/USD Silver vs US Dollar 5000 0.01 0.01
XAU/USD Gold vs US Dollar 100 0.01 0.01
XPD/USD Palladium vs US Dollar 100 0.01 0.01
XPT/USD Platinum vs US Dollar 100 0.01 0.01

How to read the table above

Our metal pairs are typically traded in lots. One standard lot is equivalent to 100 units except silver where 1 lot equals 5,000 units. Each time you open a position on a symbol, you can start with a minimum transaction of 0.01 lots.

For information about Forex leverage refer to our Margin Policy.

Important notes on our swap rates (overnight funding)

If you keep any positions open overnight, an interest adjustment will be made to your trading account as indication of the cost required to keep your position open.

This interest adjustment (or swap rate) is based on interbank lending rates, on top of a 2% fee.

The interest adjustment is calculated in points, meaning we will convert the relevant interbank lending rates to points in the base currency.

Please take note that our swap rate also depends on the time and days you hold your positions open:

  • You will be subjected to swap rates if you keep a position open past 23:59:59 GMT.
  • Positions that are still open on Wednesday at 23:59:59 GMT will be charged three times the swap rate to account for weekends – a standard practice for all brokers.
  • Our swap rate may also be adjusted to take holidays into account.

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The products offered via this website include binary options, contracts for difference (“CFDs”) and other complex derivatives. Trading binary options may not be suitable for everyone. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, the products offered on this website may not be suitable for all investors because of the risk of losing all of your invested capital. You should never invest money that you cannot afford to lose, and never trade with borrowed money. Before trading in the complex products offered, please be sure to understand the risks involved and learn about Responsible Trading.

In the EU, financial products are offered by Binary Investments (Europe) Ltd., W Business Centre, Level 3, Triq Dun Karm, Birkirkara, BKR 9033, Malta, licensed and regulated as a Category 3 Investment Services provider by the Malta Financial Services Authority (licence no. IS/70156).

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In the rest of the EU, Synthetic Indices are offered by Binary (Europe) Ltd., W Business Centre, Level 3, Triq Dun Karm, Birkirkara, BKR 9033, Malta; licensed and regulated by (1) the Malta Gaming Authority in Malta (licence no. MGA/B2C/102/2000 issued on 01 August 2020), for UK clients by (2) the UK Gambling Commission (licence reference no: 39495), and for Irish clients by (3) the Revenue Commissioners in Ireland (Remote Bookmaker’s Licence no. 1010285 issued on 1 July 2020). View complete Regulatory Information.

Binary.com is an award-winning online trading provider that helps its clients to trade on financial markets through binary options and CFDs. Trading binary options and CFDs on Synthetic Indices is classified as a gambling activity. Remember that gambling can be addictive – please play responsibly. Learn more about Responsible Trading. Some products are not available in all countries. This website’s services are not made available in certain countries such as the USA, Canada, Hong Kong, or to persons under age 18.

Trading binary options may not be suitable for everyone, so please ensure that you fully understand the risks involved. Your losses can exceed your initial deposit and you do not own or have any interest in the underlying asset.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.6% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Gold Trading

Trade Gold

In today’s markets it is possible to make profits from trading commodities, such as gold without having to physically own the metal. Gold trading via CFD’s is based on opening a temporary order to buy or sell an exact amount of gold. The profit or loss is determined by the change in the price of gold during the contract duration.

Start trading Gold with AvaTrade and enjoy the benefits of trading with a regulated, award-winning broker!

At AvaTrade you can trade gold online, easily and effortlessly. Try gold trading with the leading regulated broker and enjoy the following benefits:

  • Trade gold with competitive spreads
  • Make larger trades with leverage of up to
  • Trade on the powerful MetaTrader 4 or MetaTrader 5 platforms
  • We allow trading forex and commodities on the same platform, so you can hedge your risks
  • Trade whichever way you think the market will go – long or short
  • Trade anytime with our unique app AvaTradeGO
  • Get 24/5 live client support in your language

Gold Trading History

Since prehistoric times gold was one of the first metals to be mined, mainly because of the form in which it was found, being nuggets or small pieces at the bottom of a river. It became so high in demand that Egyptians started mining it in 2000 BC. Throughout history many civilizations chose gold as a reliable and universal form of money for trading goods.

The gold standard, the monetary system for which the economic currency used is backed up by the gold reserves of the issuing country. It came to exist, due to the recognition of gold as an actual currency. It was abandoned by the United Kingdom and the whole British Empire when World War I began. Most of the other countries also abandoned it during the 20 th century.

How to trade gold

  • Open a trading account at Avatrade
  • Fund your account to have a sufficient trading budget
  • Choose the desired position size
  • Select desired leverage
  • Open a Long (buy) or Short (sell) position according to your analysis

Different forms of gold available to traders and investors:

Physical metal (bullions or coins) – A bullion is a grouping or bulk of precious metal. Measured in the form of a bar and weight.

Gold certificates – These are very similar to the first paper bank notes. Started in the 17 th century, these gold certificates acted as proof of gold ownership, and were passed like cash payments. Today they are still issued by certain banks, and represent a quantity of gold bullion or coins for its owner.

Gold futures – Is a contract agreement for the delivery of gold in the future at a set price. Investors use this to manage the price risk. Since gold futures contracts are traded at centralized exchanges, these contacts offer more leverage and flexibility than trading commodities themselves.

Gold-based ETFs – With the idea that gold continues to offer good returns, the ETF’s – exchange traded funds, are managed by gold trading experts. They can potentially give you a better chance to earn more, than if you were to trade it on your own. Keep in mind the price of gold still will continue to affect the ETF.

Contracts for difference – suitable for traders but not investors, this derivative allows to profit from the changes in gold price during the contract duration, without either a right or obligation to purchase the actual underlying asset. Nature of CFDs allows shorting gold and trading it on a margin.

EXCHANGE INFORMATION

  • MT4 Symbol – GOLD
  • Exchange – NYMEX
  • Trading Hours – 23:00 – 21:59
  • Increment: 0.01
  • Minimum Trade Size: 1 ounce

Why Trade Gold with AvaTrade

You can join AvaTrade today for as little as and start gold and other precious metals trading. We pride ourselves in being a regulated and trusted broker worldwide for the past 11 years and are here to help you along the way.

You will get access to a range of educational tools, trading advantages and benefits that are exclusive to AvaTrade clients. We offer a range of trading platforms suitable for all level traders including automated trading solutions like Zulu Trade, as well as Autochartist and Guardian Angel add-ons. You are guaranteed to find the trading environment that suits your style.

Get started in gold trading with AvaTrade and enjoy the benefits of trading with a regulated, award-winning broker!

Gold Trading Online

Gold trading with AvaTrade is easy to understand, especially if you already have some experience of the forex market. Gold units are measured in Troy Ounces against a currency – usually the dollar – in a similar way to a Forex currency pair.

Gold Trading Influences and Gold Trading Strategy

Several distinct factors come into play when analysing the movement of the Gold price:

  • Supply and demand – Most of the global demand comes from jewelry production and manufacturing (50%), and investment purposes (40%). Increased demand with low supply can mean a higher price, on the opposite end an oversupply, with weak demand can drive prices lower.
  • Market sentiment – Political uncertainty and/or instability contributes to global growth uncertainty and does help in the rising prices of gold.
  • Market volatility – Gold has often been used as a safe haven investment when markets are unpredictable.
  • Currency movements – The US dollar is a strong influencer. When the dollar falls, commodity prices around the world increase. The US dollar and gold have an inverse relationship.

Overall if you are looking to an alternative investment arena, or a hedge – which is a reduced risk of price movements in any asset, then gold might be the right asset for you.
Please note that trading in this market involves risk like any other.

Here are a few tips for trading gold:

  • Gold is compared to the yen since both assets fall into the category of a “safe haven instrument”, they tend to move in the same direction. Often, you can check your trade set ups by comparing the two.
  • Focus on the price action and keep in mind that commodities can move more than currencies.
  • The most popular Gold exchange rate is the XAU to USD rate. XAU is the trading terminal’s code for gold.

Are you ready to start trading gold today? Start trading the gold market with AvaTrade and enjoy the benefits of trading with a regulated, award-winning broker!

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