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Gold Forcast For The Upcoming Weeks

|Includes: SPDR Gold Trust ETF (GLD), SLV

Online trading in gold is considered as a form of currency. This is done electronically same as other currencies. The only difference is that gold trading is only done against United States dollars (NYSEARCA:USD), i.e. their prices are expressed in US dollars.

The gold trading method is called (over the counter) or simply OTC. This is not part of Stock Exchange of any country and therefore its deals are not controlled the same way as Stock Exchange. It's done directly between the seller and the buyer. This means that no person(s) or organization is involved.

My Forecast, As spot gold trades now at 1588.92 I see it's going up as it forms a descending Flag Template, as we all know it's a very strong setup that might take the gold back to the highs we saw 2 month ago.

One should note that the margin requirement may change without notice because of market and changes within individual instrument. It should be noted that leverage and margin are approximations and not exact figures, since margin requirement are standardized. Therefore margin requirement will not change from transaction to transaction, as leverage/margin may become less or more favorable.

One can perform day-trading. This means that deals are completed before the closing of trading day. Gold traders usually hold their position for a short time, but the deal should not necessarily be completed within a day. Once trading day is opened, it can only close due to one of the following reasons:

  • The date decided for ending is reached
  • The deal reaches its loss limit
  • The trader ends the deal

Gold trading online has become so popular business with real time commodity quotes and lives charting services, this has made gold trading services previously reserved for the rich only, available for all. It also has advantage that, as the price of gold increases, the value of the US dollar falls; therefore investors use this as a way of balancing their profit or loss. Investors may also buy gold to balance the effect of inflation and currency value changes, since it keeps its purchasing power over time.

To learn more about trading Gold though Binary Options I always look for the best broker here. They also feature an amazing market briefing by Richard Cox.

Disclosure: I am long GLD.