Still considered by many (including sovereign funds and central banks) as the ultimate store of wealth, gold and silver are traded globally on a daily basis. Forex Gold Trading Hours
Spot gold and silver is traded in an over the counter(OTC)market and based on supply and demand the price fluctuates fluidly. "Spot price," is the price quoted for a metal to be paid for (including delivery) two days after the date of the actual transaction or "settlement date". The spot prices are "fixed" in London, twice daily for gold and once daily for silver. This assists in setting reference points for prices throughout the day.
Spot gold and silver trades are conducted pretty much the same way as currency pairs are traded. Transactions in spot metals are often made against the U.S. dollar. For example, similar to currency trading, traders can take short or long positions in silver(XAG/USD)or gold(XAU/USD)while at the same time taking the opposite position in the U.S. dollar. Gold and silver is traded against other currencies as well.
Spot metals trading is conducted 24 hours a day between Sunday at 6:00 pm ET to Friday at 5:00 pm ET. The major centers for metals trading are Zurich, London and New York. There is no central market for metals trading. When the European market hours overlap with New York trading, market liquidity is typically at its highest. For U.S. traders this is more or less a four hour trading window daily during the morning hours with liquidity potentially dropping off near the close of the U.S. Market.
This 24/5 trading is being conducted worldwide with sometime massive trades being made almost instantaneously. Consequently the spot price is a fluid and dynamic creature. The OTC metals markets are free markets in their wild and natural state. Supply and demand is king. Forex Gold Trading Hours
The world's largest gold transactions on any given day are conducted at the London P.M. "fix" price.
This "fix" in London is like the bell in a boxing match which sets the spot price. Quoted daily in U.S. Dollars it is the "spot" price that we are all so familiar with.
Most people are unaware that individuals can trade precious metals online through many Forex brokers. There are several to choose from and it is very easy to get started. You must be aware that each broker has their own fee structure and trading platform so shopping around is always a good idea.
Just as in the currency market, trading spot metals is a high risk endeavor. Traders must take the time to learn the ins and outs of the market before risking large amounts of cash. If you are considering getting involved in online precious metals trading it is important that you spend a lot of time making trades with a risk free practice account before going live with an actual cash investment. Like currency trading there are numerous strategies employed by traders. Trading strategy is a science unto itself and is beyond the scope of this article. You can find a tremendous amount of information to study online.
There are different methods employed by spot gold and silver traders. Some choose to trade manually. These traders watch the charts throughout the trading day and apply trading strategies based on their particular understanding and intuition about the market. Others prefer to use automated trading methods and employ the use of an Expert Advisor(EA). An EA is a software application which is also referred to as a "forex robot". Forex robots will pick, enter and close trades automatically. Many experienced traders create their own custom robots based on their own personal trading strategies.
Many Forex traders are moving into the trading of precious metals as the spot price records are being smashed almost routinely these days. Understanding the "spot" price is an important factor for these traders. Forex Gold Trading Hours
Read more: Forex Gold Trading Hours - A Look at the Spot Gold and Silver Market
Under Creative Commons License: Attribution
Spot gold and silver is traded in an over the counter(OTC)market and based on supply and demand the price fluctuates fluidly. "Spot price," is the price quoted for a metal to be paid for (including delivery) two days after the date of the actual transaction or "settlement date". The spot prices are "fixed" in London, twice daily for gold and once daily for silver. This assists in setting reference points for prices throughout the day.
Spot gold and silver trades are conducted pretty much the same way as currency pairs are traded. Transactions in spot metals are often made against the U.S. dollar. For example, similar to currency trading, traders can take short or long positions in silver(XAG/USD)or gold(XAU/USD)while at the same time taking the opposite position in the U.S. dollar. Gold and silver is traded against other currencies as well.
Spot metals trading is conducted 24 hours a day between Sunday at 6:00 pm ET to Friday at 5:00 pm ET. The major centers for metals trading are Zurich, London and New York. There is no central market for metals trading. When the European market hours overlap with New York trading, market liquidity is typically at its highest. For U.S. traders this is more or less a four hour trading window daily during the morning hours with liquidity potentially dropping off near the close of the U.S. Market.
This 24/5 trading is being conducted worldwide with sometime massive trades being made almost instantaneously. Consequently the spot price is a fluid and dynamic creature. The OTC metals markets are free markets in their wild and natural state. Supply and demand is king. Forex Gold Trading Hours
The world's largest gold transactions on any given day are conducted at the London P.M. "fix" price.
This "fix" in London is like the bell in a boxing match which sets the spot price. Quoted daily in U.S. Dollars it is the "spot" price that we are all so familiar with.
Most people are unaware that individuals can trade precious metals online through many Forex brokers. There are several to choose from and it is very easy to get started. You must be aware that each broker has their own fee structure and trading platform so shopping around is always a good idea.
Just as in the currency market, trading spot metals is a high risk endeavor. Traders must take the time to learn the ins and outs of the market before risking large amounts of cash. If you are considering getting involved in online precious metals trading it is important that you spend a lot of time making trades with a risk free practice account before going live with an actual cash investment. Like currency trading there are numerous strategies employed by traders. Trading strategy is a science unto itself and is beyond the scope of this article. You can find a tremendous amount of information to study online.
There are different methods employed by spot gold and silver traders. Some choose to trade manually. These traders watch the charts throughout the trading day and apply trading strategies based on their particular understanding and intuition about the market. Others prefer to use automated trading methods and employ the use of an Expert Advisor(EA). An EA is a software application which is also referred to as a "forex robot". Forex robots will pick, enter and close trades automatically. Many experienced traders create their own custom robots based on their own personal trading strategies.
Many Forex traders are moving into the trading of precious metals as the spot price records are being smashed almost routinely these days. Understanding the "spot" price is an important factor for these traders. Forex Gold Trading Hours
Read more: Forex Gold Trading Hours - A Look at the Spot Gold and Silver Market
Under Creative Commons License: Attribution
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