- PPF Points
- 2,039
Many traders claim to like gold trading more than forex trading because it involves simpler behavior, more powerful long-term trends, and an established safe haven status. Currencies of two different countries control the market in forex, while the price of gold is a result of the single factor at play in the world. Namely, economies of the world, the main problems of which are inflation, interest rates, geopolitical tensions, and central bank policies, are the driving forces for the gold price. This aspect of gold trading makes it unchallenging for a lot of traders to analyze and execute transactions because they do not need to keep in mind all the time the current situation of two riva,l currencies. Gold is the other thing that is for the most part capable of creating very long-lasting trends. This property of the yellow metal can be really beneficial to those who love to swing trade and also to those investors who, because of their strategies, want to be part of major moves instead of relying on niche fluctuations. Gold, in general, reacts very quickly and strongly to a market crisis and thus it has become the asset of choice when the crisis has struck. In times of instability that cause economic instability, people usually go for gold after losing confidence in their fiat money. The forex market is a 24/5 market, while the gold market is usually most volatile right after London opens and before New York closes since the majority of bullish and bearish players are active at the same time. The method of technical analysis, especially technical analysis of support and resistance, trendlines, and Fibonacci zones, is also quite effective in predicting gold’s future moves. And the gold market also offers less of fakeouts and manipulations in comparison to the forex market thus making gold trading quite a transparent market if you manage to understand its overall behavior. When it comes to traders who believe in quality trades, prefer longer-term trends over intraday action, and can follow global macro forces developments over the complexity of the currency market, gold trading is their sure ticket.
