Gold is the most well-known precious metal used as a trading instrument. Investors usually held onto gold as a hedge against inflation and as a store of value during times of crisis in the markets. Moreover, gold has been a store of value for thousands of years and today most major central banks maintain large reserves of gold in secured vaults.
The gold prices behave like the currency and relates to the U.S. dollar. Hence, it would be easier for traders to get their hands on it. With that, whenever the stock market crashes or when the U.S. dollar drops, it is not rare to see the price of gold surging. However, the price of gold can also be volatile enabling traders to take advantage of the price changes in the market.
In simple terms, Spot Gold in online trading can offer a hedge against inflation, an alternative investment class or a commercial hedge for investors seeking opportunities outside of traditional equity and fixed income securities.
With Doo Prime, an online trading platform, gold can be traded on a daily basis using CFD’s and traders can trade both for and against the price of gold. Traders are free to trade the U.S dollar against the gold price under their own strategies.
Thus, with the use of leverage Doo Prime offers, traders will gain the potential for greater profits or the greater loss if the market were to turn against you. Ultimately, it is essential for traders to employ risk management strategies such as stop losses when trading with gold CFDs.