CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Beginner

How to: trade Gold CFDs

Is there anything more appealing than gold?

Gold wears many hats. At times, it’s a hedge against inflation; at other times, it’s a hedge against economic fragility or simply the anti-USD.

While the catalyst of gold moving up or down is subject to much debate, one thing is clear: gold has a truly loyal following from investors and traders alike.

With a limited supply and constant demand, it’s no wonder gold is the most traded precious metal in the world. Let’s take a look at how you can trade gold with Pepperstone.

How to trade Gold CFDs

Trading gold CFDs effectively requires an understanding of the market for gold, in addition to a basic grasp of CFD trading.

Strong signals to look out for when trading gold are the near term direction of the US Dollar, moves in the US bond market and even uncertainty in the stock market or other forms of financial and economic hardship which might drive investors to head for the hills.

Aside from these externalities, gold CFDs can be traded using a fundamental framework, statistical data or charting techniques to determine potential price direction.

Gold, as with most assets, tends to trade in cycles, so tapping into the progress of these cycles by analysing previous pricing data can give traders the signal they need to jump on board with a position in the gold market via CFDs.

Approaches to trading gold CFDs

There are two approaches to trading gold CFDs.

  1. Aggressive daily trading
    Given the near 24 hour nature, tight spreads and excellent liquidity, scalpers and day traders gravitate to gold. With the ability to trade higher frequency short time frames traders can go in hard and get on with other factors in their lives or even automate this process
  2. Play the currency angle
    While most clients trade gold priced in US dollar terms, Pepperstone offers gold denominated in British Pounds (GBP), Aussie Dollars (AUD), Euros (EUR), Swiss Francs (CHF) and Japanese Yen (GPY). By having gold priced in alternative currencies, traders can attempt to maximise the returns. Traders should look to buy gold in the expected weakest currency or short gold in the perceived strongest currency this is a unique offering from Pepperstone with very few other brokers offering these products.

How can you trade gold CFDs Pepperstone

Pepperstone offers diverse ways to trade gold, including:

  • Spot gold as a CFD
  • Gold ETFs and
  • Some of the biggest and most popular global gold equity CFDs, as well as other precious metals like silver, platinum and even palladium.

In fact, in most of the regions we’re licenced, gold is typically one of our most traded products on any given day.

With a live trading account at Pepperstone, traders can:

  • Enter trades both long and short
  • Enjoy the flexibility of leverage, and
  • Take a view on gold in a range of alternative currencies and
  • Trade almost 24 hours a day

Learn more about trading CFDS

Here at Pepperstone, our customers love the product range along with the low cost to trade and the fact so many markets are open around the clock. Interested? Watch the more videos to learn or speak to our team about whether CFDs are right for you.