Gold trading can be a great alternative investment when you want to diversify your trading portfolio.
Many people have been able to grow their portfolios by taking to the market and analyzing what is happening to the price of gold. If you understand the process by which the trading of gold takes place, and the advantages you get when you trade gold online, and commodity trade, you will be able to participate in the gold market.
Many more people have been trading gold with huge success online. Follow our guide, and you too can start trading gold online!
Market Update
Gold price rises above $2400 on Fed rate cut bets ahead of speech from Fed Powell and US Retail Sales data for June. US inflation for June came in softer than expected, with prices expected to return to 2% levels.
Gold price (XAU/USD) resumes the fuel to the upside above $2,400 during the American session on Monday after a minor correction from the seven-week high of $2,424 hit on Thursday.
The precious metal attracted bids following the US Dollar (USD) pullback after the assassination attempt on former US President Donald Trump.
Indeed, the sniper attack on Trump has increased his chances of winning the US presidential race later this year.
The US Dollar (USD) Index (DXY) tracks the Greenback’s value against six major currencies The US Dollar gains its strides above 104.00, meanwhile, a higher Dollar makes the Gold price an expensive bet for investors.
Currently, the USD falls from its own after its near-term outlook remains weak on firm speculation that the Federal Reserve (Fed) will cut the rate from the September meeting.
The gold price moves higher as US Dollar retreats
The gold price regains poise as the uptrend resumes near a fresh seven-week peak of $2,424 recorded on Thursday. However, the fundamental outlook for Gold prices in the near term has strengthened as yields on the US Treasury reverse direction in an upward trajectory.
US Treasury yields are on the backfoot as market bets for the Fed to embark on rate easing from its policy meeting in September, have accelerated after upbeat comments from Fed officials last week.
The yield on 10-year US Treasury bonds is creeping up to 4.20% and is near an almost four-month low. Yields on interest-bearing assets decrease the opportunity cost of holding an investment in a non-yielding asset like gold. Pair that with the bulging probability of Fed rate cuts. Fed rate cuts are a fallout of a slowdown in US consumer inflation and a softening in the labour market strength. The US Consumer Price Index (CPI) report for June published last week, shows that price pressures eased by a better-than-expected clip.
Softer inflationary pressures bolstered sentiment that the disinflation process has resumed after an irregular unwind in the first quarter of this year. Also, the headline CPI monthly inflation went into the red after a sizable six-month streak.
This week, investors will primarily eye headline inflation data from the US for June recorded on Tuesday, as retail sales. The US retail sales data are estimated to show that sales of retail goods remained unchanged after a meager rise of 0.1% in the prior month of May. Meanwhile, in Monday’s session, investors will look forward to Fed Chair Jerome Powell’s speech at the Economic Club of Washington at 16:30 GMT.
Last week, while answering lawmakers’ queries at the semi-annual Congressional testimony, Powell admitted some traction in inflation but maintained that policymakers need to see inflation falling for months before they can be confident of interest rate easing.
Technical Analysis: Gold Price Aims to Gain Firm Footing Above $2400
The gold price hovers in a narrow wedge above $2,400 amid attempts to receive more hints from the FED, about when will they begin to hike interest rates.
The gold price has been rolling up in consolidation for the past three months within the range of $2,277-2,450.
An upward sloping of the 20-day Exponential Moving Average (EMA) at $2363 indicates the predominant upward trend.
A 14-day Relative Strength Index (RSI) soars over 60.00 for the first time in more than a month, thus more upward momentum on the horizon without any bearish hints such as oversold and divergence.
Introduction to Online Gold Trading
The internet age has created new opportunities for earnings through online gold trading. With barriers to entry disappearing, more and more people are learning how to trade gold online, and investing in the market changes with the power of technology.
In this detailed guide, you will learn the fundamentals of online gold trading, the benefits, trading strategies, and the global online gold market environment.
What is Online Gold Trading?
Investment in online gold trading, buying and selling gold online, is one of the latest innovations in the financial world. Gold is bought and sold through platforms accessible through the internet. Investors can trade in gold without having to hold the actual metal, which includes gold futures, gold ETF (Exchange-Traded Funds), and gold mining stocks. The main advantages include the ease and speed of executing a trade and the option of trading in fractional amounts.
How is Gold Traded Online?
To trade gold online, you will need to open a gold trading account with a broker. The process is as follows:
1. Account Registration: Signing up with a broker and verifying identity.
2. Funding the Account: Depositing money into the trading account using various payment methods.
3. Choosing a Trading Platform: Picking a platform that provides gold and commodities trading with complete tools and real-time data.
4. Executing Trades: Placing buy or sell orders based on market analysis and strategies.
Benefits of Trading in Gold
1) Liquidity: Liquid markets allow you to buy and sell gold quickly and easily.
2. Portfolio diversification: To reduce the risks of holding other assets, a gold investment could be helpful.
3. Hedge Against Inflation: Gold often retains its value or appreciates during inflationary periods.
4. Accessibility: Anyone with an internet connection can trade gold online.
Successful Strategies for Commodity Trading
It’s not easy to make a success of trading in gold. As with any other market, you need to learn a lot about prices, what moves the market and how, what you’ll be up against, and so on. However, it is possible. Here are some tips.
1. Trend Following. Markets often trend for a long while, like the direction in which the gold price is moving.
2. Macro Analysis (Fundamental Analysis): analyzing economic news (earnings, jobs report, inflation), geopolitical event risk, and market news that can move gold prices.
3. Technical Analysis: Using charts, indicators, and patterns to predict future price movements.
4. Risk Management: Setting stop-loss orders and managing position sizes to minimize losses.
Gold Trading Account
A gold trading account is required to participate in online gold trading. A gold trading account allows you to use buying and selling tools, and different types of gold trading instruments. A broker provides a good account to invest online, which includes a user-friendly interface, daily updates, and customer support as well.
Gold Market in the World
The global gold market is considerably complex in nature. Economic data, geopolitical tensions, and central bank policies are just some of the most influential factors affecting the trading price of this precious metal.
While it may not be the largest market in the commodities sector, it accounts for a sizeable amount of total trading volumes. Major hubs include:
1. London: The London Bullion Market is the world’s primary wholesale market for gold.
2. New York: COMEX (Commodity Exchange) is a leading gold futures market.
3. Shanghai The Shanghai Gold Exchange is one of the most active gold markets in the world and indicates how much gold China needs.
It’s one of the leading trading platforms, offering all the features you will need for depth, detail, and success, whether you’re a newbie or an experienced trader.
Here’s why trading with Finbok is the smartest choice:
1. Modern User Interface: Finbok’s platform provides a user-friendly interface that allows people who are new to trading cryptocurrencies and investors who have experience in the stock market to begin trading via our website. A demo account is provided for users to operate under experimental and simulated conditions.
2. Extensive Market Access: You are free to trade stock, foreign exchange, commodity, and cryptocurrency assets on Finbok platform. Therefore, you have the flexibility to diversify your portfolio and venture into all market segments.
3. High Tech Care: Finbok keeps you connected to the market and helps you trade at high speeds on a volatile market with top-notch security.
4. Trading Resources: Finbok provides advanced trading tools, including webinars, tutorials, and market reports, to trade effectively and stay profitable.
5. Attractive Fees: Pay affordable and competitive fees.
6. Support: Careful. Finbok is concerned enough to offer support 24/7: ‘Do you have questions about trade, orders, or problems with our site? Feel free to contact our service staff at any time of the day.’
Trade with Finbok and benefit from state-of-the-art instruments, market access, and full backing.
