Some are going to trade in the gold market because it is highly profitable, especially as it is the safest trend in the unstable economic conditions that hit the world.
What is gold trading?
But first you have to know what is gold trading, where the price of yellow metal is linked to many other markets and assets, which makes it necessary to take into account some important considerations.
Gold is a kind of currency that can be traded in the same way as other currencies, but there is a small difference that gold can only be traded in exchange for the US dollar (USD). The standard symbol on gold is XAU. AU are the two chemical codes of gold.
The gold price is measured by weight. There is more than one way to measure the weight of gold. The most common way to measure gold weight is the head weight method, where the vertical ounce is about 31.10 grams, while the ounce equals 28.35 grams.
To be more clear, if the price of gold 612.97 it means that the ounce of gold traded against $ 612.97.
It also means that the higher the price of gold, the lower the US dollar price, which is why investors and traders use gold as a means to balance their profits and losses against the dollar.
Factors affect the price of gold
There are elements and factors that affect the price of gold. Therefore, everyone who wants to trade in gold should study the market well, analyze the gold market, not be reckless, and be aware of the political, economic and social changes of the gold producing countries, the change in gold prices in the market, the financial crises and the supply and demand of gold. .