Gold to US Dollar
- By date
- Metadoro first
Gold prices dazzled the market with an unbearable shine last week after prices leapt by 4.4% to $2431 per troy ounce. Following the attainment of new all-time highs, they retreated to $2324. The resistance at $2400-2500 per ounce remains formidable and unyielding. A breakthrough in this zone seems highly improbable. The $2400-2450 range appears secure for initiating short trades. My target is $2200-2220 by the end of April. I will set the stop-loss at $2600 per ounce.
Gold to US Dollar
- It is traditionally considered as a safe haven asset, which is in demand when market uncertainty and risks are rising. Geopolitical tensions, economic turbulence, and high inflation usually contributes to rising gold prices;
- Gold prices usually move in the opposite direction to the U.S. Dollar vs other currencies. This is not only because gold prices are measured in U.S. Dollars, but also because it derives from the comparison of the yields of safe haven Dollar-denominated assets like U.S. Treasuries that have regular coupons and Gold itself that has no extra paid interest. So, a rising Dollar and Dollar-denominated assets result in lower demand for Gold, dumping its price;
- The demand for precious metal and its use in production purposes also affect gold prices. For example, central banks may have extra demand for gold because they want to store it into their Forex and Gold reserves. Jewelers can contribute to elevated demand too;
- Gold prices could become extremely volatile during trading in a very short period of time. This volatility usually exceeds currencies, commodities, and stocks by far. It may result in a large profit, but it also has large risks while trading.
Traders must be cautious when trading gold. It is better to trade with low volumes. Experience in trading is vital to exercise gold trading.
Ticker | XAUUSD XAU/USD |
Contract value | 100 Tr.Oz. |
Maximum leverage | 1:100 |
Date | Short Swap (%) | Long Swap (%) | No data |
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Minimum transaction volume | 0.01 lot |
Maximum transaction volume | 100 lots |
Hedging margin | 50% |
USD Exposure | Max Leverage Applied | Floating Margin |
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