MUMBAI (Commodity Online): Combining forex trading with gold trading can be highly lucrative. If you have been following gold prices, you must know that gold prices have reached their historical peak this week.
Gold prices recently broke the historical barrier of $1,000 per ounce and now hovering over $ 1,150 per ounce. And, the market is anticipating a dollar depreciation.
Whenever, the markets become jittery, investors start buying gold as a hedge against the dollar. Last year, after the stock market crash, many investors started investing in gold as a safe haven against the turmoil in the financial markets. Gold and dollar have an inverse correlation relationship.
Gold and dollar are almost near perfect mirror image of each other. US dollar depreciation during the global financial uncertainty has been the primary reason for the gold appreciation as it is viewed as the ultimate form of money. Gold is also seen as the primary safe haven commodity. Countries like China, Russia and India are converting there dollar reserves into gold. This is putting upward pressure on the gold prices. Gold market has been in fact in a secular bull market for the last many years.
Now the good news, if you are a forex trader or if you have just started trading forex, then you should know this fact that you can also trade gold along with forex. The technical analysis basics for both markets are almost the same.
The details may vary but if you can trade forex, you can also trade gold. As said before, dollar and the gold prices have an inverse relationship so combining forex trading with gold trading can be a perfect hedge. Both compliment each other. Most of the brokers allow gold trading from the same platform that you use to trade forex. If you want to take part in this latest gold rush, you can start trading gold along with forex.
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