Gold has maintained its own legacy in trading because of its popularity and uniqueness. Gold was used to trade physically, but trading it now has become more secure and fast on Forex. Forex is the world’s largest and most liquid financial market, where participants trade currencies and various other financial instruments, including commodities like gold.
It is vital for you to know the right gold trading hours, strategies, and tips before making any decision. This article will cover tips, gold trading hours, and the pros and cons of trading gold. Let’s dive into it.
Top Tips for Gold Trading For Beginners
Learn and Educate
It is indispensable for every trader to educate themselves about gold trading and learn every nitty-gritty fundamental aspect of it. You can learn it through blogs, webinars, YouTube videos, and e-books about gold trading. Additionally, you can also consult expert gold traders for tips and strategies.
Understand What Moves Gold Prices
Three factors drive the price of gold: the price of the US dollar, the supply and demand of gold, and the amount of gold in the central reserve bank. It is crucial for you to understand these terms before you dive into real gold trading.
Find a Reliable Broker
As a beginner, it is important for you to consult a trustworthy trader to be on the safer side and protect your assets. Here are some factors before choosing a forex broker online:
- Security
- Type of accounts
- Customer service
- Customer reviews
- Tools and features
- Regulatory bodies.
Practice With Demo Account
Once you find a reliable broker, you shouldn’t directly jump into live trading, or else you will risk your assets. Therefore, practice your trades with a demo account and learn different strategies for gold trading. You can also explore different technical analysis tools provided by the broker in your demo account.
Employ Technical Analysis
It is vital for every trader to leverage technical analysis in forex trading. With technical analysis, you can make informed gold trading decisions and make a good amount of profit on Forex.
Does gold have Trading hours?
Yes, it does. Gold is actively traded in various global markets, and its trading hours can vary depending on the exchange or market you are trading on. Here is the list of some of the demanding gold markets:
London Bullion Market Association
It is one of the most popular and largest markets for trading physical gold. It operates in London and sets the global benchmark for gold prices. The trading hours of this market are typically 10:30 AM to 3:00 PM (London Time).
Commodity Exchanges: TOCOM and COMEX
Gold futures contracts are traded on commodity exchanges such as the COMEX (Commodity Exchange, a division of CME Group) in the United States and the Tokyo Commodity Exchange (TOCOM) in Japan. These exchanges have specific trading hours that can vary but generally include regular trading hours and after-hours electronic trading.
According to Investopedia, TOCOM is Japan’s biggest marketplace for raw materials and commodities such as gold, silver, and rubber.
Forex Market
You can start trading XAU/USD (XAU refers to gold) on Forex five days a week, Monday to Friday, with weekends off. It’s important to note that gold trading in the forex market is not tied to the physical market’s hours. Instead, it can be traded whenever the forex market is open, which includes overlapping sessions of major financial centers such as London, New York, Tokyo, and Sydney.
OTC Markets
In OTC markets, the trades are processed in a decentralized way, making it more secure for the traders. These markets can have varying trading hours depending on the broker or financial institution offering the products.
Final Verdict
Gold trading isn’t every one game. There are many aspects to look out for. We have described the top tips for gold trading and gold trading market hours. Make sure to learn, practice, and learn different strategies for gold trading to make the right trading decisions.
