Gold and Forex are both trading instruments that offer investors great opportunities to make money either physically or through derivatives. Both instruments are also deemed as a good hedge against the political and event risks.
Although Gold and Forex have their own intrinsic value, and are not subject to the policy changes by the governments and central banks ; but, in terms of inflation, the value of currencies will go down when inflation rises and people whom are holding their valuable assets in the form of gold will drive the price of gold up.
Besides, Gold and Forex have offered investors with easy access to the market and due to their globe-spanning market, traders can trade gold and forex around the clock in different parts of the world.
Most of the online trading platforms will be offering different leverage option for traders to trade with for forex and metals markets, some brokers even offered up to 1:500 leverage, this means that for every $1 of their capital, traders can have $500 to trade with.
Anyway, most of the platforms will applied a certain level of control towards the traders, to help them to establish a margin call that will help them in managing the risk by not only protecting the platforms but, also the traders from huge loss.
In terms of volatility, gold is usually deemed as a safe haven by the investors along with the assets like the Japanese Yen and bonds that are issued by the US Treasury. Speaking of which, the traders will sell risk haven when their risk appetite grows, opting for other higher rewarding instruments to trade, such as Forex.
To conclude, although some of the currencies have a strong link with gold, but most of the time, risks taken in currency trading can be hedged against gold investments; therefore, it would be best if the investors are diversifying their portfolio by including both the trading options.