Commodities

Gold and Silver Trading

The volatile price movements of Gold and Silver make them highly attractive for traders as there is the potential to make rapid profits. The VEER GLOBAL HUB web trading platform allows our clients to trade precious metals with some of the lowest spreads in the market within a true STP/ECN environment.

Key benefits of online Gold and Silver trading with VEER GLOBAL HUB

  • Tight spreads with no commission charges
  • Leverage on precious metals is set
  • Direct market access
  • No manual intervention on your trades
  • Fast market execution regardless the trading size of your order

Get The Trading Tools You Need

Trading precious metals is highly attractive given the large price fluctuations that take place in a very short period of time. Traders need the right tools at their disposal to take advantage of such movements immediately. VEER GLOBAL HUB provides a platform packed with charts and tools that allow its our clients to trade precious metals instantly, online with ease.

Online Gold Trading

Spot gold trading is an especially attractive trading instrument given the popularity, gold has with investors as a safe part of their investment portfolio in recent times. Buy and sell gold online through platform with low spreads at leverage instantly as prices fluctuate due to market movements or news, as its happens.

Precious Metals Trading with Low Spreads and No Commission

VEER GLOBAL HUB is an ideal place for Gold and Silver trading considering that our clients will always receive competitive spreads and true market execution through an STP/ECN business model. The spread on Gold is very less pips and for Silver also less pips only and there is no commission charges whatsoever. By improving the conditions on precious metals trading VEER GLOBAL HUB allows its clients to maximize their potential levels of profitability.

The value of gold

As a commodity, gold has a reputation for keeping its value despite turbulence in other markets. Points of view differ on the intrinsic value of gold. As an element, it has properties that make it particularly well suited to certain industrial applications and aesthetically its pleasing appearance makes it a metal of choice for jewellery. However, its value in gold trading is also driven by its scarcity compared to other commodities. 165,000 tonnes (the equivalent of 5.3 billion troy ounces) of gold had been mined in the world by 2009. Total yearly world supply is currently under 4,000 tonnes. Around half the world consumption of new gold is for jewellery. Investments account for another 40% and industry for the remaining 10%. This distribution means that the value of gold on the market is determined in a different way to that of major currencies such as the dollar , Euro & Gbp

The price of gold

The universal benchmark price of gold, known as the London Gold Fixing, is determined to a large degree by the International Monetary Fund and central banks. Gold prices have recently been around $1,600 per ounce, a long way from the $35 per ounce fixed at the Bretton Woods conference of over 50 years ago when the gold standard was applied. When the gold standard was abandoned by the United States in 1971, gold trading prices increased dramatically to over $800 per ounce in the 1980’s. Between that peak and today’s level, gold prices have varied considerably, dropping as low as $260 per ounce in 1999.

How gold trading is done?

Gold trading can be done in a similar way to currency trading. Gold prices are quoted in relation to the US dollar, the currency pair thus formed being XAU/USD. In the same way that traders will examine market conditions and price history to predict how one currency will perform against another, they can also do this for gold in relation to the dollar. A number of currency (forex) brokers also offer trading in commodities such as gold for this reason: it is a natural extension of the techniques and infrastructure required for successful trading in currencies. Leverage is also used in gold trading, allowing investors to make larger trades but only using a smaller amount of their own funds. In transactions like these, there is no physical delivery of the gold involved, just as there is no physical delivery in forex of a currency that you buy.

Factors affecting gold trading

US dollar: There is already a recognized relationship between the US dollar and gold prices. As the US dollar weakens in the market, gold prices tend to rise, and vice versa. Given the financial liabilities of the United States and the possibility that devaluation of the dollar may be the result, this would push gold prices up.

Demand for jewellery: With 50% of new gold being absorbed by this market, the jewellery sector and the consumption in countries like India, China, Italy, Turkey and the US have a significant influence on the price of gold. Of these, the Indian market for gold jewellery is the biggest. Specific events in that country alone can therefore bring about sizable swings in the market price of gold. Examples include the overall success or failure of harvests (farmers buy gold to hold when they have surplus cash), the seasonal demand generated by particular religious festivals and any natural disasters that perturb the economy and consumer demand with it.

Exchange-traded products: Now that gold can be traded in exchanges and online as easily as any other paper currency or financial product, trading volumes and demand increase. Institutions handling gold for investor speculation in this way include the London Stock Exchange, Australian Stock Exchange (Gold Bullion Securities), the New York Stock Exchange (StreetTracks Gold) and the Electronic Traded Funds initiated by the World Gold Council.

“Safe haven” reactions: When political problems or increases in inflation occur with international impact, investors tend to move towards gold as a “safe haven”, meaning a commodity that is likely to hold its value even if other markets suffer.

Gold trading for diversification

Gold trading is of course just one possibility for investors seeking profits. It has specific advantages nonetheless in terms of diversifying an investment portfolio, particularly for investors who operate on a longer term basis. Gold has a low or negative correlation with other assets, meaning that decreases in the value of other assets either do not affect gold prices or in fact, cause gold prices to rise. Gold prices are not linked to the performance of the economy or industry, and for this reason, open positions in gold against the dollar can improve the consistency of results for investors in otherwise stable or unstable periods