Invest in Gold market through SuperForex

Trade gold online with silver, WTI, Brent crude oil, indices and foreign exchange markets. Using MT4 data, you can access more than 50 tradable markets on the SuperForex platform, quickly execute your transactions.

As a rare metal, gold has always been at the top of precious metals. For thousands of years, it has been exploited, sought after and traded, and like oil, it is a safe haven currency for war.

In the case of limited supply, it is always possible to maintain its value. In the past, investors used it to hedge against economic inflation, and now more use gold to hedge against negative interest rates.

Because of its limited supply, it is a valuable storage commodity, and for such an expensive metal, it has a wide range of uses, having been used as currency, store of value, jewelry, and electronics (etc.).

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What drives Gold market price?

Supply and demand:
All markets are affected by supply and demand, and gold is no exception. Long-term investors tend to buy long-term demand, they monitor the gold demand of countries and central banks. The quarterly report released by the World Gold Council breaks down the supply and demand levels of these groups, as well as the demand for jewelry, ETFs, coins, and technology.
US Dollar:
Since spot gold is priced in US dollars, it is natural to expect an inverse correlation between gold and the US dollar. Under normal circumstances, traders want to see the U.S. dollar go down to trade gold bulls (and vice versa); however, there is no fixed correlation between the two, and sometimes the U.S. dollar and gold fluctuate simultaneously because both markets are considered avoidance. Risk assets.
Risk sentiment:
There are several markets that attract capital flows during periods of risk aversion, and gold is one of them. If the headlines are enough to make stock markets fall, bonds rise, and the yen and Swiss francs attract capital inflows, then gold may also appreciate, and vice versa. Once the market risk stabilizes, gold usually weakens to a certain extent.
Economic data:
If macroeconomic data indicates that global economic growth is slowing, then as investors become defensive, gold may appreciate. Whether it is a short-lived reaction or the beginning of a new trend, it all depends on the importance of the data. Ultimately, this is intertwined with risk sentiment. If a series of macro data is weak, it may trigger a risk-averse reaction and support gold’s strength as a secondary reaction.

Gold is considered a safe-haven asset, and if the value of other asset classes declines, it will retain at least part of its value. Therefore, before investing in gold, it is necessary to assess the possibility of simultaneous decline in stocks, bonds and other assets. Most people hold gold as a hedge, rather than believing that the global economy will be hotter.

Gold holdings do not provide income, and prices may fluctuate. Historically, when the stock market fell, gold holdings performed best.

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Why people invest in Gold online?

Long or short trading:
Being able to trade in both bull and bear markets at the same time does not mean that there is no potential risk. Because all brokers lend stocks to short stocks, futures can prevent traders from entering or exiting the market, but with CFDs, you can freely speculate on the direction of the market.
Fast execution:
There will be delays in trading physical gold and even ETFs. There is no such problem with gold CFDs, because the entry and end of transactions are almost instantaneous.
Trade risk sentiment:
Since gold is considered a safe-haven asset, it can attract capital during periods of instability, which makes gold CFDs an excellent choice for trading risk indexes.

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How to hedge with physical gold, ETFs or gold stocks?

Compared with the physical market they hold, investors can use CFDs to hedge market risks at a relatively small cost. Hedging is the process of trading in the opposite direction (usually equivalent) to the original position. Here are just a few examples:

If investors hold physical gold, they are actually going long in the gold market, but if they are still optimistic about gold in general, but are worried that gold may pull back in the short term, they can choose to short the value of the physical gold they hold Equivalent gold CFD. In doing so, if the price falls, then the profits from their short gold CFD positions will offset the loss of their physical positions. Of course, if the price of gold rises and the value of physical gold rises, investors will lose money in hedging gold CFDs, so they can choose to close the hedging transaction.

Following the same principles as above, traders can hedge their portfolios of ETFs and even stock CFDs. Perhaps they are shorting a group of American gold miners, but worried that the price may rise, they can open long CFDs to hedge market risks.

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Why choose SuperForex to invest in Gold?

Competitive spreads:
Trade with low spreads through SuperForex’s top liquidity providers.
Low transaction costs:
By providing low spreads, competitive inventory interest rates and low (or now) commissions, SuperForex will significantly reduce your transaction costs.
Up to 500:1 leverage:
With 100:1 leverage and some contract transactions, you only need to trade 1 ounce of gold, and the cost is only a small part of the physical market.
Fully hedge your CFD transactions:
If you open an equivalent gold CFD in the opposite direction, the margin requirement for your two transactions will be zero, thus freeing up funds for other transactions while you hedge the gold CFD.

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