Global Forex Trend of Gold
In the market, in addition to currency pairs, there is an asset XAUUSD or, simply put, gold. If you ever tried to trade it, you noticed how sharply your stop loss was knocked out. Why is gold moving so sharply? How can we use this to our advantage?
Those watching gold are well aware that in the second decade of the 21st century, precious metal ceased to be a quiet haven protecting investors "assets from inflation at an ever-rising price. The long-term trend of increasing gold values led to four-digit course values, widespread robots and strategies that were given as grail, actually using averages in the form of "stretching" purchase warrant grids or Martingale - increasing position with a rising loss.
Global trend of gold
Like any asset, XAUUSD is affected by seasonality, downturns and activity during the day, responds to macroeconomic statistics, etc. As for the global trend, on the scale of weekly candles for thirty years, it still looks growing, in time correction.
This is a topic of constant analyst speculation, with increased forecasts of "tens of times" growth after 2016, linked to a sharp rise in gold at the time of the Fed 's rejection of zero-rate policies.
If you estimate locally the segment from the beginning of 2011, the naked view shows a change in the range of fluctuations. The subsequent movement can be roughly divided into two roughly equal periods: falls (until 2014) and a subsequent wide flute. Such long-term behavior of quotations allows to deny with sufficient confidence the presence of any directed movement in the pair XAUUSD, which significantly downplays the role of "quiet harbour."
Many traders have stopped seeing earnings opportunities on gold amid nine years of growth in developed-country stock markets. The same applies to a simple resident who chose a digital currency during crisis moments.
XAUUSD Features and Specifications
In the Forex market, two types of gold designation, Gold or a more correct name, XAUUSD, are common in broker terminals. This symbol complies with ISO 4217, which regulates the three letter code. According to this standard, the letter "X" was added in front of the Au metal symbol taken from Mendeleev 's table of chemical elements.
The gold rate is currently a four-digit number, with two digits after the comma, reflecting the current value of the triple ounce expressed in US dollars.
The system of counting items in XAUUSD quotations is often controversial. In order not to be confused, take the number of digits after the comma as a double digit number of points, i.e. the change in the price from 1270 to 1270.50 should be perceived as 50 points, and the increase to 1271 will mean an increase of 100 pp.
The transaction table of any system involving the right tool (in this case XAUUSD) on the myfxbook service can help to ensure that gold points or any other non-standard tool are counted correctly. By selecting the history of any monitoring transactions in this Forex account analysis service, the trader can see how the items and financial outcome of closed XAUUSD items are actually considered.
The cost of the item, depending on the size of the item chosen by the trader, can be found in the "Trader Calculator" service from its broker, for example, from Alpari. When entering the market with a 0.1 Lot warrant, the trader will earn or lose 0.1 $at each point.
Pay attention to the time of gold trading with your broker!
Some brokers stop trading an hour before midnight. Traders often learn about it in one of Fridays, holding off a deal to close it at the end of the day, avoiding moving the position through the weekend, unexpectedly finding no movement of quotations on the chart.
Before trading any tool, including XAUUSD pair, pay attention to the contract specification. This will give information not only on the trading time, but also on the size of the swap, which is added or subtracted when the transaction is carried over the night, depending on the direction of the position.