Gold trading on Forex.
Despite being a precious metal, gold is also a subject of active forex speculation.
Gold trading on forex is conducted in the trader's terminal using the XAUUSD currency pair and is technically no different from other instruments.
You can also place urgent and pending orders and use any available technical analysis tools .
The XAUUSD currency pair consists of two assets: gold, of course, as the base currency, and the US dollar as the counter currency. This means you'll be trading gold against US dollars, regardless of your deposit currency. You can also use the XAUEUR currency pair for trading, which is ideal if you trade during the European trading session and rely on current news.
Unlike other currency pairs, trading volumes here are calculated not in standard lots or monetary units, but in Troy ounces. An ounce is equal to 28.5 grams of gold, and one gold lot contains 100 ounces. When you trade one lot, you're trading 2,850 grams of metal, which at the current exchange rate is around $130,000.
Moreover, thanks to the two-digit price, the pip value is low, just around $1 for a one-lot volume.
Gold trading is more suitable for traders who prefer dynamic trading . This precious metal can sometimes move more than 1,000 points in a single day, and only in one direction.
A distinctive feature of this type of trading is its relatively stable trend; if a bullish trend emerges, it will persist for at least several hours.
Regarding strategies used for trading this precious metal, virtually any Forex strategy . The movements of XAUUSD and XAUEUR follow the same market rules as other currency pairs .
