Henyep Capital Markets (HYCM) analyst Giles Coghlan shared four key things to know about gold trading. He told investors, “pay attention to each of these and take the long journey where you can understand what moves the gold markets.”
First two things to know about gold trading: Real returns and US dollars
The analyst first draws attention to real returns. He says the real yields are bond yields minus inflation. “Declining real returns are good for gold and increasing real returns are bad. If inflation pressures decline rapidly, that means real returns could start to increase, and that’s a pressure for gold. However, look at the actual returns with the US dollar. Ideally, you want real returns and the US Dollar to move in the same direction to be convinced in a move.”
The dollar has a strong influence on gold. USD strength is a headwind for gold and USD weakness is a support headwind for gold. “This means you need to have a good understanding of what is driving the USD,” Coghlan said. USD is misleading as it has different catalysts at different times. For example, last week the USD was used by all three factors on different days. Safe-haven demand, reflation expectations and Fed policy changes,” he said.
Seasonal demand and ETF levels
Gold tends to take physical demand by storm in January and August due to physical demand for the Chinese New Year and Indian wedding season. On the other hand, exchange-traded gold funds (ETFs) also remain important, according to the analyst. An ETF is a type of security that tracks an index, industry, or commodity. They have become increasingly popular as financial instruments. When gold ETF levels rise, it helps gold prices rise and vice versa.
Meanwhile, cryptocoin.com As we have also reported, gold started to move. Gram gold was able to rise above 500 lira and settled at the highest level seen in 3 months with 510 lira. On the other hand, ounce of gold is in an effort to rise to the levels of $ 1,760.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, asset or service in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.