Gold Trading for Beginners: Complete Guide

Introduction

Gold trading involves buying and selling gold as a commodity. Gold is traditionally used as an inflation hedge and safe-haven asset.

Part 1: Gold Market Fundamentals

Why Trade Gold?

**Inflation Hedge:** Appreciates during inflation

**Safe Haven:** Appreciates during market stress

**Diversification:** Low correlation with stocks

**Liquidity:** Highly liquid market

Gold Trading Methods

| Method | Characteristics ||--------|-----------------|| **Spot Gold** | Physical gold delivery || **Gold Futures** | Contracts for future delivery || **Gold ETFs** | Exchange-traded funds tracking gold || **Gold Stocks** | Mining company shares || **CFDs** | Contracts for difference |

Gold Market Hours

**COMEX:** 6:00 PM - 5:00 PM EST (24/5)

**London Fix:** 10:30 AM, 3:00 PM GMT

**Most Liquid:** US market hours

Part 2: Gold Price Drivers

Macroeconomic Factors

**Inflation:** Higher inflation = higher gold

**Interest Rates:** Lower rates = higher gold

**Currency:** Weaker USD = higher gold

**Geopolitical Risk:** Conflict = higher gold

Technical Factors

**Support/Resistance:** Key price levels

**Trends:** Long-term trends persist

**Volume:** Volume confirms moves

Part 3: Gold Trading Strategies

Buy and Hold

Purchase gold and hold for long-term appreciation.

Swing Trading

Trade 2-5 day price movements.

Hedging

Use gold to hedge stock portfolio risk.

Part 4: Risk Management

Position Sizing

Use 1-2% risk per trade.

Stop Losses

Always use stops to limit downside.

Correlation

Monitor gold-stock correlation for portfolio risk.

Part 5: Getting Started

**Step 1:** Choose a broker (gold futures or ETFs)

**Step 2:** Open an account

**Step 3:** Start with small positions

**Step 4:** Use stop losses on every trade

Conclusion

Gold trading offers inflation protection and diversification. Use proper position sizing and stop losses.

Risk Disclaimer

**GOLD TRADING CARRIES RISK OF LOSS.** Past performance does not guarantee future results. Consult a financial advisor before trading.