Table of Contents
What is Gold trading?
Trading in Gold is the process of making bets on Gold market prices to make a profit – typically via options, futures and spot prices, shares or ETFs, or exchange-traded funds (ETFs). Typically physical Gold coins or bars are not involved in this transaction. Instead, they are settled using cash.
There are numerous reasons to sell Gold, such as pure speculation, the desire to purchase and become the owner of physical Gold, or to hedge against the risk of instability.
If you are trading in Gold, it isn’t necessary to follow the conventional dictum of “buy low, sell high” because you can change short and long on the Gold price – benefiting from markets that are priced lower and those that rise after a certain interval.
Whatever you choose, the purpose of trading Gold is to determine which direction the market will likely be heading towards. When it goes according to your plan, you’ll earn more, while when it goes against you, you’ll lose your Gold capital.
Forex vs. Gold Trading
| “The decision to purchase Gold or currencies is ultimately based on your risk tolerance and goals for trading.” |
| “The decision to purchase Gold or currencies is ultimately based on your risk tolerance and goals for trading.” |
Foreign exchange, also known as Forex, has been dubbed the most significant international financial market, with an estimated $6 trillion daily in trade volume.
However, because of the high level of activity, the Forex market is highly volatile, so even though it provides many opportunities, it is also a significant risk.
On the other hand, Gold trading is renowned for its security and stability, making Gold one of the most well-known investment options for storing wealth. While Forex traders may be focused on the fluctuations of prices in the short run, most Gold traders try to benefit from the long-term trend.
Gold’s value
The worth of Gold historically stems from its cultural, emotional, and financial capital. As a result, people of different social and cultural backgrounds see Gold as a symbol of wealth in every country.
The value of Gold is reasonably steady, but because of its importance and usage as a store of value, it is subject to more significant fluctuation and volatility than other commodities.
What are the primary factors driving Gold’s International Market Price?
The price of Gold is affected by demand and supply, just like other exchange-traded markets. Therefore, if excess supply and a decrease in demand cluster up the market, the value of Gold will decline. If it is true that demand for Gold increases, but without an increase in supply, then the price of Gold will go up.
The main factors that affect Gold’s price include:
- Political & Economic Instability: Gold is seen as a secure asset so in periods of uncertainty,
It is employed to hedge against the effects of inflation. The reputation of Gold as a safe refuge comes from its long-standing storage value and ability to hold its value over time.
However, as inflation increases, investors and traders may prefer to save money in Gold rather than more risky investments, causing the price of Gold to rise.
- Industrial Uses: The majority of Gold demand derives from technology, jewelry, and investment. The continuous and varied market for Gold indicates that it’s stable.
For example, although the economic environment could reduce the demand for jewelry and other electronic products, investment flows will ensure that Gold prices remain safe from extreme fluctuations.
- Discoveries: The Gold supply is limited, but mining accounts for 75% of the Gold production. Therefore, any finding of Gold could drive prices in the short term. Another significant source of supplies is recycling, mainly from technology or jewelry.
- US Dollar: Any changes in the value of the greenback causes Gold to become more or less appealing to investors. So, for example, if the US dollar appreciates, the demand for Gold will go down as investors would prefer buying the US Dollars.
How to Get Started with Gold Trading?
Step 1
Create an Account: To create an account, you’ll need to fill out a few essential details and upload the necessary documents. Once your credentials are verified, you’ll get approval to start trading.
Step 2
Add Funds: To get started with your ISA Bullion Account, simply add funds to your trading account via bank transfer or credit/debit card.
Step 3:
Start Trading:
It’s time to start trading! Now you can start making profitable trades through ISA’s secure platform.
Step 4:
Secure Your Profits
Download our app on iOS and Android to keep track of your profits and losses, as well as direct access to a host of features to help you with investing and trading.
How to trade with the ISA Bullion App via Laptop
Follow the below-mentioned steps to start trading on the ISA Bullion App:
- Visit the ISA Bullion web page and log in to your Web Dashboard on the ISA Bullion web trader platform.
- Let’s say that you want to trade 1 oz of Gold from the web trader. Of course, you’ll first need to buy the Gold. E.g., you may buy 1 oz Gold.
- Once Gold reaches your desired selling price point. Then, you’ll sell the Gold to make a profit.
- Congratulations. You have sold the Gold at a profit!
- Your profitable trade is now successful!
How to trade with ISA Bullion’s Mobile App
- To trade, log in to your user Dashboard via the ISA Bullion App and select a category. For example, in the below screenshot, we clicked on the Gold-Oz category.
- Click Buy XAU to purchase Gold at the stated price.
- Confirm your purchase of 1 Oz of Gold
- In this screenshot, you can see that trade has been executed successfully.
- Once you’ve reached the price point you desire, you can sell your Gold as quickly as possible. Please see the following example.
- Once you sell your Gold, your capital and profit will be available in your ISA bullion wallet.
As you can see, ISA Bullion provides a simple, straightforward way to invest in precious metals. You can buy and sell Gold and silver quickly, and profits can be locked in instantly if you want to get started today. Download ISA Bullion’s mobile app for Android & Apple from here now.