CMSTrader allows you to trade gold and silver by using the CMSTrader platform. Many consider gold and silver to be the safest options, especially when the stock market goes down. You can access this market through our platforms. By trading these goods and enhancing your investment by using leverage up to 1/50, you will be able to trade these goods with the lowest amount (up to 50 times the value of your account).
Advantages of trading Gold and Silver
- Narrow margin (fixed-variable-ICN), as well as competitive prices, without commissions or any hidden fees
- Gold and silver trading is considered to be a safe haven from the decline in stocks and commodities
- Volatility of gold and silver on a daily basis provides you with many opportunities for trading
- You’re in control the size of the profit and loss through the service (take-profit and stop-loss service)
- Market is open 24/5, Sunday 22:00 - Friday 21:00 GMT
Trading Gold and silver with CMSTrader
Gold and silver trading is much like currency trading. The trader can take positions to buy or sell gold and silver and then take the opposite position on USD or other major currencies. Prices of gold and silver float freely on the basis of supply and demand in global trades. Spot price is the price offered for metal, which is a price you should pay ( delivery included) after two days of the actual deal (also known as a settlement date).
Trading can be done 24 hours a day, 5 days a week: Sunday 22:00 GMT to Friday 10:00 GMT. There is no central market for gold and silver trading. However, the main centers for gold and silver are London, New York and Zürich.
Liquidity is considered to be at its best when the European market hours overlap with the New York market, almost four hours a day during mornings in the US. There are some periods of low liquidity in gold and silver near the end of the day for the US market (22:00 – 23:00 GMT).
Why to trade in Gold and Silver?
- There are many reasons to trade Gold and silver such as:
- Speculation of prices is based on fundamental and technical analysis
- Creation of balanced and varied distribution of assets create a more stable investment
- Application of risk management as a hedge against market volatility, as well as financial crises caused by economic, social or political turmoil.
How to read the prices of Gold and silver
Reading the price of Gold and Silver is similar to reading Forex rates. For example, XAU/USD is representing Gold against US Dollar.
Let’s say that XAU/USD is 900.25: XAU refers to one ounce of gold and the value is always 1 ounce. Therefore, 1 ounce of Gold is worth $ 900.25. When price of Gold rises, the value of Gold is worth more than that of the dollar. Similarly, if the price falls, you will need fewer dollars to buy one ounce of Gold, which means that value of dollar rose compared to the value of gold.
Gold as a hedge against inflation
One of the most common description of gold and silver trading is a hedge against inflation. It means that with the decline of the purchasing power of currencies, gold is considered as a hedge against that decline. During the inflation, gold ensures that you will receive an amount of money proportionate to the amount of gold you have, regardless of what the inflation rate is.
Gold as an alternative to USD
Gold and silver are also used as a hedge against USD in the current economic environment Therefore, when USD is affected by negative pressure, investors seek other alternatives including gold and silver to secure the value of their investments.
Trading gold as a safe haven
Many traders believe that gold is the best option on the market. During times of volatility and high risk, investors are able to convert their investments to gold as a protection against uncertainty, which is an inherent and inevitable part of the industry.
Understanding economic and political factors
Economic indicators that have an impact on inflation include: consumer prices, producer prices, as well as interest rate and treasury bond, these all play a significant role in finding the rate of inflation, thereby having an impact on price of gold. Macroeconomic indicators, such as unemployment rates and GDP, also highlight the strength of the economy, and may lead investors to invest in gold, depending on the data. The current economic environment has seen some significantly negative correlations between precious metal and weakness of the USD.
Political events can also have a major impact on the price of Gold. For example, If the uncertainty rose over the conflict in middle east, it may have an impact on the perceived safety of the investment in a country’s bonds or currency. Many investors transfer their money to gold as a way to avoid these risks. Gold can also be affected by oil prices, among other commodities, as the relationship between them play a role that affects the gold market. The rise in the price of oil’s prices may cause the price of gold to head in the same direction.
Trading Gold is usually volatile because the ability to enter and exit positions varies several times per minute. For this reason, prices may be more vulnerable to short-term fluctuations that do not necessarily follow a long-term trend.