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Trading Tips

As and when any investor or company wants to start business and making money they develop Business plan after through study and accordingly invest capital in that business. Gold “Safe Heaven” is volatile asset, money and there are numbers of factors involve which determined Gold Rates. Gold basically dealt with four types. They are exploration, mining, consumers and recycles. The 3 categories of consumers are industrial, jewellery producers and investors.

There are 2 types of prices

Spot price:

Current market price (CMP) at which gold was brought or sold for immediate payment and delivery

Future Price:

The price at which the participants in a futures contract agree to transact on the date of settlement

The Gold prices continues to be set twice daily (at 10:30 and 15:00 London GMT) in US dollars for settlement.
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Factors that are affecting on Gold Prices are:

  • Demand and Supply
  • Investment trends
  • Twin deficits result from trade and growth in balance against the US
  • Protection against volatility
  • Gold and inflation
  • Currency changes
  • Gold and interest rates
  • Geo political news
  • Government Polices
  • International relations
  • Future Gold demand
  • Dollar weakness
  • Correlation with other assets classes
  • Weather conditions

Gold prices are sourced at OTC markets, Bullion banks and Bullion traders using Meta Trader 4/5 platforms. Similarly gold future price is sourced on Exchanges. These exchanges act as the primary source of gold futures prices. Major Gold Exchanges are:

Top Gold Trading Strategies and Tips

  • Consider whether the markets are in “risk on” or “risk off” mode
  • Look at the likely performance of the US Dollar as well as the gold price
  • Consider a mix of fundamentals, sentimental and technical analysis
  • Watch out for central bank buying or selling
  • Consider the demand for gold jewelry
  • Look at the industrial demand for gold
  • Control your emotions, margin and Equity
  • Avoid over leveraging or over positioning
  • Calculate risk and reward ratio
  • Follow the market trend, sentiments and use Stop loss
  • Keep update yourself studying following economic Calendar
  • Market conditions are expected to change drastically any time. “If doubt, get out and stay out”.
  • You cannot and must not trade all opportunities. Find the best setup and trade that only.
  • Zones and levels work and act as important places where you can
    (i) Close your positions
    (ii) Open new positions
    (iii) Take partial profits
  • Follow technical perspective, charts avoid speculations and do your own analysis
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