Both in today’s modern world and historically, commodities have been basic building blocks of the economy. What are commodities? Keeping things simple, commodities are raw materials that are used everyday for daily uses.
When commodity trading is mentioned, gold is one of the first things to come to mind. In the list of “soft commodities”, gold is the most popular precious metal of all in today’s world.
Like silver, gold is considered a currency in the Forex market and is traded in a similar way to other currency pairs. This commodity’s low correlation with other commodities and its pricing related to flat currencies during the recent financial crisis are all building blocks to that conclusion. The difference however between other currencies and gold is that gold can only be traded in terms of USD.
This popular trading commodity is very often used as a strategy to hedge against inflation. This is due to the fact that when the US dollar drops, gold prices rise. In addition, many individuals buy gold as a means of long-term investment, rather than speculating gold prices for trading opportunities. This commodity is highly sought after specifically for jewelry. In fact, over 60% of gold consumption is for jewelry production.
Traders can seek profit from the fluctuations that are provided by the news based on the economic events that will affect Gold prices. With PCM International, traders are able to benefit from professional trading platforms that enable them to use advanced gold trading strategies. PCM International also offers access to accurate real-time gold charts and forecasts and updated news on world economics events. In addition, trading gold with PCM International allows you to leverage your exposure to market movements for maximum profit.
A key factor of trading CFD’s successfully is being educated about potentially profitable trading opportunities and knowing it’s in-depth specifications and benefits. The table below is provided for further details about the commodity.
History of Gold:
Egyptian hieroglyphs from as early as 2600 BC describe gold, which king Tushratta of the Mitanni claimed was "more plentiful than dirt" in Egypt. Egypt and especially Nubia had the resources to make them major gold-producing areas for much of history. The earliest known map is known as the Turin Papyrus Map and shows the plan of a gold mine in Nubia together with indications of the local geology. The primitive working methods are described by both Strabo and Diodorus Siculus, and included fire-setting. Large mines were also present across the Red Sea in what is now Saudi Arabia.
XAU/USD can be traded on our platform on the following times
12:00 am to 11:00 pm (Central European Time) Monday to Friday.
10:00 pm to 09:00 pm (GMT) Sunday to Friday.
Gold quoted in U.S. Dollars