Brokers Providing Metal Trading

• The highs and lows of the last four-hour trading period should be pinpointed 15 minutes before the NFP output is made public.
• A buy order should be positioned below the range's high while a sell order should be positioned below the range's low.
• A secure stop-loss should be positioned on the other side of the range for the two orders.
• Wait for the initial reaction of the NFP to activate one of the orders.
• The other pending order should be canceled once an open position size is acquired.
• The take-profit can be determined using the target price.

Continue Reading at How to Trade Gold on NFP

As an investment, gold has unique characteristics. Its long-term profit prospect has turned it into one of the few safe havens in the financial market. This is how it influences currency. At good times, or when the world's economic prospect is good, investors will lose their gold and seek to invest in stocks and currencies. Conversely, erratic stock and currency markets will drive investors to seek safety in gold and increase the gold price.

Investors also use gold as a hedge against inflation, as it is the perfect anti-inflation instrument. Therefore, during a high inflation period, investors will seek gold and drive the price higher.

Continue Reading at Understanding the Effect of Commodity and Stock in Forex

While it has plenty of benefits, gold also has several drawbacks. Including:

1. Physically, it is impractical to be brought in your pocket.
2. Safety and security require special arrangements.
3. There is no periodical cashflow.
4. It takes time to liquidate gold.

Continue Reading at The Pros And Cons Of Gold Investment

Historically, gold played a crucial monetary role; the gold standard had led many central banks to own gold reserves to back their domestic currencies. Even now, central banks still hold on to vital gold reserves.

The World Gold Council reported that central banks and state governments hold 17.2% of all gold mined throughout history in the form of coins or bullions. In addition, central banks have also been net buyers of gold over the past years, using the precious metal to diversify their reserves and minimize risks.

Continue Reading at Gold Vs US Dollar: Which is the Better Safe Haven?