A traditional financial safe-haven, gold is sought the world over by individuals, governments, central banks and hedge funds. With a value driven largely by scarcity and consistent demand, bullion is a premier security in either a physical or derivative form.
Trade Gold with FXCM
Commission free* with fast, efficient execution
What is Gold (XAU/USD)?
Gold is priced in USD per ounce and is traded in the spot market. Since 1919, the London Gold Price, set twice daily by five major dealers, has been the primary benchmark for gold. Globally, gold is traded instantly through the OTC market (code XAU). FXCM's Gold CFD (XAU/USD) allows investors to speculate on gold price movements without holding physical gold.
- Margin Requirement: As low as 0.5% (refer to the official website or FXCM Trading Station II for real-time requirements）
- Trading Hours (GMT+7):
- Summertime: Monday 05:00 to Saturday 03:45
- Wintertime: Delayed by 1 hour
- Daily Market Closure: 04:00–05:00 (delayed by 1 hour in wintertime)
- Position Holding Rules:
- Spot gold has no expiration date, but holding positions overnight incurs overnight financing costs (also known as Rollover).
- Overnight interest on Wednesdays is calculated at triple the rate (viewable in real time on the trading platform).
- Trading Parameters (XAU/USD):
- Spread: Floating (adjusted based on market liquidity)
- Trading Units: Minimum: 0.01 lot (1 ounce); Maximum: 100 lots (10,000 ounces)
- Pip Value: Every 0.01 price movement = 1 pip (valued at USD 0.01), suitable for short-term trading
Encounter New Opportunities in Gold
Highly competitive low spreads to help you uncover every potential trading opportunity!
Why Trade Gold?
"Gold has never been worthless!" This adage underscores gold's millennia-long status as currency—it has been a hard currency and an anchor for fiat money and remains a crucial reserve asset today.
Two Major Trading Advantages
#1 Low Entry Barrier and High Accessibility
The digital age has made gold trading unprecedentedly convenient, with multiple channels available:
- Spot Markets/ETF/Futures and Options
- Forex (XAU/USD)/CFD/Equities
Whether you’re interested in ETFs, acquiring physical bullion, or trading the XAU/USD, all you need is a broker, risk capital and internet connectivity. In comparison to the past, gold's barriers to entry have been greatly reduced.
#2 Excellent Global Liquidity
As a universally recognized synonym for "value," gold boasts astonishing market depth:
- Physical Market: According to LPMCL data, its five major members had an average monthly trading volume of 18–20 million ounces in the first half of 2019 (Source: July 8, 2019 – link).
- Derivatives Market: CME gold futures have an average daily trading volume exceeding 200,000 contracts (valued at $28.9 billion), with significant retail participation.
Gold Price Chart
Past Performance: Past Performance is not an indicator of future results.
Practical Guide to Gold Trading
The New Era of Digital Trading—Online platforms have completely broken down the barriers to gold trading. Whether it's physical gold, derivatives, or gold ETFs/stocks, all of them can be traded through electronic channels; even gold jewelry can be directly liquidated online.
Three Steps to Successful Trading
-
Master Market Fundamentals
Economic Cycles: Demand for gold decreases during economic expansion and becomes a safe-haven choice during recessions (e.g., gold prices doubled from 2008 to 2012)
Market Participants: Movements by institutions such as central banks and hedge funds can cause significant price fluctuations
Supply and Demand: Gold's crustal abundance is only five parts per billion, supporting its value through scarcity
-
Develop a Trading Plan
Resource Assessment:
Reasonably plan your available funds and time.
Goal Setting:
Clearly define your expected returns and risk tolerance.
Strategy Selection:
Choose a trading method that suits your situation.
-
Select an Optimal Trading Platform
Product Selection:
- Long-term value preservation → Physical gold
- Short-term profit → XAU/USD or Gold CFDs
Broker Screening:Verify qualifications, reputation, and compliance
What Influences The Price Of Gold?
The global gold trading price is sensitive to a variety of factors. Issues such as geopolitical tensions, fluctuations in currency values or macroeconomic uncertainty are all capable of enhancing the pricing volatility of bullion. Due to the high degree of public interest, any fundamentals that skew perception toward economic or political stability are very likely to influence pricing.
The following are several market drivers that are capable of sending gold prices directional:
- Periods Of Economic Boom Or Bust
- Armed Conflict
- Financial Crisis
- Institutional Stockpiling
- Supply Chain Disruptions
- Governmental Regulation
By far, panic and euphoria are the premier catalysts behind moves in gold pricing. In the event uncertainty is interjected into the marketplace, prices typically rise due to bullion's standing as a safe-haven asset. Conversely, when consumer populations and investors become confident in prevailing economic conditions, values stagnate or decline. For either scenario, perception is very much reality and prices frequently follow suit.
Tips For Trading Gold
As in all other areas of trade, there is no "holy grail" to conquering the gold markets. True arbitrage opportunities are rare and fleeting, leaving performance in the hands of the individual. Successful gold trading is typically rooted in discipline, consistency and stick-to-itiveness. Without these, a foray into the bullion markets is very likely short-lived.
There are certain practices that reduce pitfalls and promote competent trade. Here are a few tips for gold trading that can enhance long-run performance:
Apply Leverage Thoughtfully: The number one enemy of inexperienced or aggressive traders is becoming financially overextended. If trading gold futures, the XAU/USD or related CFDs, applying leverage consistently and with care is essential to achieving longevity in the marketplace. Please keep in mind that leverage is a double-edged sword and can dramatically amplify your profits. It can also just as dramatically amplify your losses. Trading foreign exchange/CFDs with any level of leverage may not be suitable for all investors.
Stay Current: The bullion market is a dynamic atmosphere. It is always a good idea to stay abreast of the day's geopolitical, monetary policy, economic and industry-specific issues.
Avoid Panic Trading: Led by gold, commodities markets show a consistent sensitivity to panic trading. One historical example was the Black Friday gold crash of 24 September 1869, where values plummeted more than 16% in minutes. While the volatility of panic trading is attractive to those seeking large profits, the chance of buying tops and selling bottoms increases significantly.
Adhere To A Plan: The number-one tip anyone can give on gold trading is to build a plan and stick to it. Even if a plan is not as strong as it could be, the structure eliminates haphazard risk taking, negative impacts of emotion and inconsistent trade.
Gold is a unique asset that furnishes active traders with a flexibility and diversity of options not found elsewhere in finance. If approached from an educated perspective within the context of a comprehensive plan, gold trading can be valuable in the pursuit of nearly any financial objective.