Gold trading hours are almost 24 hours a day. Gold exchanges are open almost all the time, with business going from London and Zurich to New York and Sydney, and then to Hong Kong, Shanghai and Tokyo before Europe regain control. This means that liquidity is high 24 hours a day, although, as in the case of the exchange rate, it may be relatively calm after the closing of New York, with smaller volumes and, therefore, the possibility of volatile price movements. For the Gold Sales Melbourne this is important.
How to trade gold using technical analysis
Technical traders will notice how the market condition of the gold price chart has changed over the years. Gold prices were in a considerable trend from 2005 to 2015. Since 2015, gold prices have been trading within a defined range, changing hands between $ 1,000 and $ 1,400. If the market is trending, use a momentum strategy. If the gold chart has a range limit, use low volatility or range strategy. This is a key ingredient in a gold trading strategy.
For those who prefer to use technical analysis, the simplest way to start is by using previous ups and downs, trend lines and graphic patterns. When the price of gold is rising, a significant previous rise above the current level will be an obvious target, as well as an important previous low when the price is falling.
Also in a bullish trend, a line on the chart that connects the previous highs will act as resistance when above the current level, while a line that connects earlier higher lows will act as support with the true reverse in a falling market. As for chart patterns, those such as head and shoulders tops and double bottoms are relevant, just as they are when trading currency pairs.
For the more sophisticated technical trader, using Elliott Wave Analysis, Fibonacci retracement levels, momentum indicators and other techniques can help determine likely future movements
Gold tips for beginners and advanced gold traders
Returning to the fundamental analysis, the beginner needs to consider one point in particular: is market sentiment likely to be positive or negative if the former, then the price of gold is likely to fall and if the latter is likely to rise. This is, therefore, the simplest strategy to use when trading gold.
For the more advanced trader, however, it is important to also consider what is likely to happen to the dollar. In recent years, the dollar has increasingly become regarded as a safe haven, which partly explains why the dollar gold price has remained relatively stable. So, if you think, for example, that the geopolitical situation is going to get worse, you can consider buying gold, but at the same time selling, say, the Australian dollar against your American counterpart.
An advanced trader will also want to keep an eye on the demand for gold jewelry. In India and China in particular, gold jewelry is still seen as an important long-term investment, it also has its uses in industry and the purchase and sale of gold by central banks can also be important all factors that can move the price.