CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of Pepperstone Limited’s retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Risk Warning.

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Gold (XAU/USD) - Reasons Why Gold is Traded

  • As an investment, gold is the most popular of the precious metals
  • Investors generally buy gold as a hedge or safe haven harbor during economic, political, or social uncertainty (including investment market declines, burgeoning national debt, currency failure, inflation, war and social unrest).
  • The gold market is subject to speculation as are other markets
  • The history of the gold standard, the role of gold reserves in central banking, gold's low correlation with other commodity prices, and its pricing in relation to flat currencies during the financial crisis of 2007–2010, suggest that gold behaves more like a currency than a commodity
  • There are several factors which drive gold up/down:
    • Global inflation
    • War in the Middle East and North Africa
    • Threats to oil supplies
    • Volatility in the forex markets