Gold trading can be an advantageous venture for traders with limited funds and basic forecasting skills, who want to use financial leverage to increase their returns.
Building a long-term strategy requires using both fundamental analysis, such as chart reading, and technical analysis – applying oscillators or trend lines – in assessing price movements across instruments with correlation.
XAU/USD
As with other forex trading pairs, the price of XAU/USD is affected by global economic and political unpredictability. When this volatility arises, major currencies often experience value declines prompting traders to seek safe assets such as gold.
Gold is an effective way to diversify and protect an investment portfolio against inflation, as well as being perceived as a safe-haven asset in times of political or economic unrest. Gold can help provide investors with diversification while protecting them against risk in times of volatility or instability.
Day traders can look for buy and sell signals by targeting previous highs or lows; however, reaching these levels takes longer and doesn’t offer as many opportunities for momentum trades as trend following strategies do.
XAU/JPY
The XAU/JPY pair represents the value of gold per troy ounce in Japanese yen. Gold’s value fluctuates depending on its correlation with US dollars and other currencies; it can serve as an effective hedge against risks associated with global economies weakening or paper currencies becoming less valuable.
Gold has historically outperformed other assets when confidence in paper currencies wanes and war breaks out, as well as experiencing substantial stock losses. Correlations can often be unpredictable between gold and other assets; therefore, traders should always keep a close eye on them.
XAU/CAD
XAU/CAD shows the Canadian Dollar equivalent of 1 Troy Ounce of Gold as measured against its base currency of Canadian Dollars. Gold is often considered an incorruptible and safe-haven asset during periods of economic instability.
Gold prices are closely watched, as their influence can have an enormous effect on global currencies and financial systems. Their long-standing appeal has kept gold as an integral component of international finances even as many developed nations transition away from gold standard to fiat money; gold also acts as an effective hedge against inflation.
XAU/CHF
Gold is a form of currency, and its price changes relative to other forms. The XAU/CHF pair shows how many Swiss Francs it would require to buy one Ounce of Gold.
Gold prices tend to increase when trust in paper currencies and assets is diminishing, such as during wars or when stocks suffer significant losses. Gold is seen as a safe haven asset during times of market or geopolitical unrest.
This chart displays the XAU/CHF rate history since Friday, 9 September 2022 and updates every minute. All Forex pairs can utilize this chart; select different periods and timeframes accordingly.
XAU/NZD
The New Zealand Dollar (code: NZD) is the official currency in New Zealand, Cook Islands, Niue, Pitcairn Islands and Tokelau and is one of the world’s most liquid currencies – commonly referred to by its popular nickname ‘Kiwi”.
The New Zealand Dollar’s value tends to be affected by gold price movements. Furthermore, its correlation to commodity-dependent Australian dollars makes the pair an appealing way to protect yourself against rising commodity costs. This makes the pair an appealing option for traders seeking hedging strategies against rising commodities prices.
XAU/SGD
Gold can serve as an investment haven during times of global economic instability. Typically, its price moves inversely with that of the US Dollar; when its value rises, gold tends to decline and vice versa.
LBMA, COMEX and CGSE are three global exchanges for trading gold, with their prices often being determined by interest rate fluctuations; additionally the USD often follows its path as it moves toward lower US interest rates.
Wise uses the real mid-market USD/SGD exchange rate when sending money to Singapore, making comparisons easy with the fees charged by other international transfer services on our comparison page. Furthermore, these rates are updated daily based on changes in currency markets.