Trading gold on Forex.

Despite its belonging to precious metals, gold is also the subject of active speculation on Forex.

Gold trading on Forex is carried out in the trader’s terminal using the XAUUSD currency pair and is technically no different from working with other instruments.

You also place urgent and pending orders and can use any available technical analysis tools .

The XAUUSD currency pair consists of two assets, the base of which is, of course, gold, and the quoted one is the American dollar. That is, you will trade gold for US dollars, regardless of the currency of your deposit. You can also use the XAUEUR currency pair for trading; this option is suitable if you work during the European trading session and use current news in your work.

Unlike other currency pairs, transaction volumes here are calculated not in standard lots and monetary units, but in Trinity ounces; an ounce is 28.5 grams of gold, and one gold lot includes 100 ounces.

When concluding a transaction in one lot, you work with 2,850 grams of metal, which at the current exchange rate is around $130,000. At the same time, thanks to only a two-digit quote, the cost of a point is low, only about 1 dollar with volumes of 1 lot.

Gold trading is more suitable for traders who prefer dynamic trading ; this precious metal sometimes manages to move more than 1000 points in a day, and only in one direction.

A distinctive feature of this type of trading is a relatively stable trend; if a bullish trend has already emerged, it will persist for at least several hours.

If we talk about the strategies that are used for trading this precious metal, then you can use almost any Forex strategy , the movement of XAUUSD and XAUEUR is subject to the same market laws as other currency pairs .