Gold has been a favored investment and wealth protection asset for many years. The price has remained stable for many years such that an ounce of gold could buy a tailored suit in London a hundred years ago and can still do so today. Most gold binary options brokers who offer this kind of asset on their platforms are considered to be reputable and reliable ones. Gold commodity price is normally based on the value listed on the COMEX future exchange. Gold is an excellent way to diversify an investment portfolio.
Gold commodity
Gold is a highly volatile asset. A look at the trading charts will show you that there can be hundreds of pip movements in no time at all. It is important that binary traders know gold commodity tips and understand the daily ranges and trends before they place their Put, Call, Boundary or Touch/No Touch trades.
Gold commodity price is massively influenced by the demand for it. As equity markets become less attractive traders tend to seek safe havens, chief amongst them gold. Therefore, traders often look to economic sentiment in their assessment of the likely fluctuations in the value of gold.
The top 10 gold producers in the world are China, Australia, United States, Russia, South Africa, Peru, Canada, Ghana, Indonesia and Uzbekistan. Production figures out of these countries will also affect the gold commodity price, as they are the Supply in S&D.
How to trade gold: long-lasting trades
At the same time gold has always been a very long term asset. There are times where an economic event will only affect the price for gold over a long period of time. The reason behind this is that the market has not yet adjusted to the demand for gold. It's important to have the right investment strategy when trading gold with a constant monitoring of the price after economic events. To trade gold you should also consider incorporating long term expiry times for your trades. It's hard to rely on stats and moving averages to predict price direction, with the limited movement of gold. You really have to base your trade on a fundamental supply and demand strategy, and careful timing.
Historic charts show that gold commodity has been rising steadily since 1979, so gold is always going up. If you can time your trades to capitalize on gold's upward price movements, trading gold binary options can become very lucrative for you. The key is timing. Start by paying attention to gold prices and commodity news that refer to gold, and successful trades are sure to follow. Stay tuned for more of the latest tips coming your way.