METALS

TRADING IN PRECIOUS METALS ON FOREX

Trading in precious metals is one of the distinguishing features of the modern Forex market. The most common assets in this area are gold, platinum and silver. Online platforms allow you to trade precious metals on a long-term basis as well as short-term contracts. At the same time, both trading opportunities are highly effective. It is no coincidence that most profitable investment strategies are based precisely on working with metals, and if we talk about positions opened for several weeks, then here, too, gold, silver and others are predictable, since the list of factors affecting their quotes has long been known to traders.

The peculiarity of precious metals is that they are popular with ordinary traders and large investment and state companies. It is often the large companies that prefer to invest in jewelry that have a strong influence, which leads to an increase in demand, followed by a rise in value. Ordinary market participants, without large deposits, also influence quotes, creating short-term and medium-term trends. This is especially true during periods of decreased volatility, when large players either leave the market or pause.

It should be remembered that all precious metals are closely related to other assets. For example, gold is traded with a clear peg to the dollar, so a change in the value of the US currency will certainly affect the position of the metal. Moreover, in this sense, there is a much clearer correlation than the relationship between currencies or currencies and stocks.