We'll talk in this article about the nature and origin of gold prices and their relationship to the currency trading market. And we'll talk also about how gold depending on the trading price in the global trading markets, and the impact of the increase or decrease in the price of gold on the other currencies. So is gold the only currency to crumble, gold has proved its strength through ancient and modern times, too, and still is the strongest currency in the world. It is expected to come a day where it can buy a large quantity of gold at a bargain price, and buy wheat or rice.
Gold is a type of currency
If we go back in history, back we will see that in the old gold was a form of currency, where the currency is traded in lots of ancient societies. And remained so until the present time it is considered a type of currency in one way or another. In Forex trading market, Gold is considered a form of currency that can be traded, and is seen in the same way that are looking out into other currencies, but there is only one difference, where only gold can be traded against the U.S. dollar (USD) without the rest of the Currency. Then you can, for example, that the pound is trading against the dollar or the yen or the euro, but gold is not allowed except for currency trading is only one. The symbol of the universally recognized gold is XAU. This code was built from the letter X derived from the word Forex Forex and the chemical symbol for gold (AU).
Gold Prices
The price of gold is measured by weight. The price of gold shows the global cost of an ounce of gold in U.S. dollars. There are several methods and criteria for measuring the weight of metals in general, but the most common standard is the ounce (ounce) and is equal to almost one-ounce 28.35 grams.
For example, if the price of gold is 1425, this means an ounce of gold traded equal to 1425 dollars.
Through trading gold prices
Gold is invested in the same manner in which they are investing in the Forex market. Where are traded directly between buyer and seller (via the trading platform through the Internet) Forex As well as gold, where not taken any exchange of material between the seller and the buyer.
For example, if you held a deal to buy gold at a price of 1425, you will not receive ounces gold directly, but Such as Forex will be placed in the calculation of your trade you you purchase a specific number of ounces gold at a price of 1425 for Ounce In the case of the high price of an ounce to 1428, for example, would then have achieved a gain equal to $ 3 per ounce.
Increase in gold prices affect the exchange
Could increase in the price of gold affect other currencies. The rise in gold prices could leave its impact, especially in the currencies of major gold producer. Australia is the third largest exporter of gold in the world, and Canada is the third largest gold producer in the world. Therefore, if you think that the price of gold will continue to rise, you can start to hold Australian dollar deals or the Canadian dollar, because it is expected that these coins become stronger with the increase in gold prices. That gold looks like the currency trading market, in terms of neutrality, there is no, there are countries can control prices in the market exchange. Exchange prices are rising when the political or economic situation excellent, and vice versa.
Gold prices is part of the forex market
To create longs Gold (XAU), you can start by opening a demo account with a broker in the forex trading market. And then begin to train the right way for the trading of gold during the follow-up developments in the economy and politics, as well as technical analysis in the forex trading market.
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