To better understand different approaches to trading XAU/USD, CFDs on XAU/USD, traders may explore common strategies used under different market conditions. No strategy guarantees maximum profit or success.

Choose the best indicator for gold trading. Of course, you should consider your trading style. No indicator is universally best or consistently accurate. However, there is one indicator that is especially effective and widely used among forex gold market participants. It is the Relative Strength Index (RSI). Some traders may use it in combination with another trend indicator called the Exponential Moving Average (EMA).

This combination may work under certain market conditions. Here's why: gold can be sensitive to changes in momentum and trend, and this pair of indicators helps determine both. However, results are not guaranteed.

One possible interpretation is as follows:

This is a fast-paced trading strategy. It is characterized by the trader opening and closing positions within a few minutes and aiming to earn from small price movements. It may also result in rapid losses. The strategy is especially relevant for gold, as it is a highly volatile asset. High volatility can create trading opportunities but also increases risk.

To apply this strategy, it is important to closely monitor indicators (including EMA) and not rely on luck - only on calculated decisions. However, indicators and calculated decisions cannot guarantee profits.

One more tip: gold scalping is commonly considered during hours of high market activity. These hours are not necessarily the most profitable. Volatility, spreads, and slippage may also increase.

This is a so-called comparative trading strategy. It doesn’t just involve buying or selling gold or silver. It’s a bit more complex. The trader analyzes which of these metals is currently undervalued and which is overvalued. Based on this analysis, the trader bets on the equalization of this imbalance.

To implement this strategy, traders may calculate the Gold/Silver Ratio. It is defined as the ratio between the current prices of one ounce of gold and one ounce of silver. As a rule, this indicator has historically fluctuated within the range of 50–80.

What’s next? If the ratio is high (e.g., 85), it means silver may be considered cheaper relative to gold. Some traders may consider buying silver and selling gold. If the ratio is low (e.g., 45), it means gold may be considered cheaper relative to silver. So it’s the opposite - some traders may consider buying gold and selling silver.

The following section provides general information about gold options. It does not confirm that gold options are available through Weltrade. Product availability depends on the relevant entity, jurisdiction, account, and platform.

Options provide the right, but not the obligation, to buy (Call option) or sell (Put option) gold at a fixed price by or on the future date. Depending on market trends, different strategies can be used.

For example, if a trader expects the gold price to rise, the trader may consider buying a Call option. If a trader expects a decline, the trader may consider - buy a Put option.

For trading on high volatility, some traders may consider buying both a Call and a Put option simultaneously. This strategy is called a Straddle.

The following section provides general information about gold futures. It does not confirm that gold futures are available through Weltrade.

A futures contract is a speculative tool that allows you to buy or sell gold in the future at a price agreed upon now. Futures contracts create contractual obligations and may involve margin requirements, expiry dates, and substantial risk. To explain how this works, let’s look at a specific example.

Suppose you buy a gold futures contract at $2000 per ounce. If the price rises to $2050 a month later, you may earn a gross profit of $50 per ounce. If the price falls, you may incur a loss. The actual result depends on the contract size and execution price.

If you decide to trade futures, it is important to understand one detail. In Forex, the minimum price movement of an asset is measured in pips.

How to calculate gold pips in forex?

On most platforms, 1 pip = $0.01. With futures, everything is calculated slightly differently - in ticks. Here, 1 tick = $0.10. This is important to understand for proper risk and profit assessment when changing strategies.