Gold investment turns out to be a choice for those of you who want to protect your wealth assets. The presence of online gold trading through a broker makes it easier and minimizes the risk of gold investment. The transaction is now even easier and simpler.
Here are some reasons why gold trading can be an option:
Safe-haven assets
It is categorized as a haven because gold does not risk losing its value in a country’s financial or political uncertainty. Especially when the forex market fluctuates, traders will tend to turn to gold. According to Investopedia, investors typically look at gold as a safe haven during times of political and economic uncertainty. Thus, there are many investors who choose gold as their invesments.
Not affected by inflation
When the value of a currency has the potential to decrease due to inflation, it does not apply to gold. The value of gold tends to continue to increase from year to year. So that gold is a favorite asset for the long term.
Not affected by changes in interest rates
One that makes the price of gold not affected by inflation because rising interest rates do not affect the price of gold. If interest rates rise, the price of gold does not go up. When there is inflation, it means that the value of the currency is down so many are turning to gold to safeguard wealth assets
The same trading system with forex trading
In online gold trading, gold is considered a currency and has the term XAU paired with USD. With online gold trading, you can take long positions at any time of the day like forex trading. Because like the forex market, you can still take profit opportunities from two-way transactions with open short positions such as forex.
Very influenced by the movement of the USD
Gold price movements are often influenced by USD movements. For example, if the results of the FOMC meeting mention that there is no increase in interest rates, then the value of the USD weakens and raises the value of gold.
For novice traders, online gold trading should be the initial choice because of the value movements that are often influenced by the condition of the United States. Thus, it tends to be easier to predict.
Read more: Forex Trading Success: The Power of Trading Consistency
