How To Trade Gold Forex
To know how to trade gold forex, let’s ask 1st why is gold part of the forex. Answer: gold acts as a physical currency = trading gold is included in forex.
You can trade gold online with almost every forex broker online.
Gold Forex Symbol
Many don’t know but you can trade spot gold price as a forex pair XAUUSD.
Au is a symbol in periodic table of elements which stands for Aurum, which in latin means gold.
Since every currency in forex have 3 letters they put X in front of Au to get XAU symbol for gold currency.
Since in most forex pairs the quote currency is USD, we get XAUUSD as gold vs USD currency pair.
Gold Forex Broker
Most forex brokers offer XAUUSD currency pair trading so we could say that most forex brokers are also gold forex brokers.
XAUUSD is just another term for a spot gold trading or gold spot market trading.
You can also read our Forex Brokers Reviews category to read about forex brokers we tested.
Gold Trading Leverage Allowed
Leverage used on trading gold of course depends on each gold forex broker and regulation in each country of the client.
In countries with strict financial regulation, the gold trading leverage can be as small as 1:10.
With countries where financial regulators are not so strict, the gold leverage to trade forex can go as high as 1:500.
Forex Gold Analysis
How to start analysing forex gold or spot gold market?
There are different ways for different types of gold traders.
Most use technical indicators like EMA, RSI then another trade mostly Fibonacci retracements and extensions.
What we learned in years of trading gold is that trading gold by only analysing gold spot market with technical indicators are not good enough for a long term success.
Gold Forex Price
Many things influence gold forex price.
Gold markets can be very technical but also prone to brutal naked short selling that mostly occur in gold futures markets when gold futures markets exchange Comex open at 8.30am New York time.
Gold Forex News
Tracking gold forex news is always beneficial in predicting direction of gold market because it gives you good insight in a gold market sentiment.