SPOT METALS TRADING

WHAT IS SPOT METALS TRADING

Trading precious metal like Gold (XAU) or Silver (XAG) is the cash price of that metal in the market.

With ForexG, precious metal trading is the act of exchanging Gold or Silver spot prices for a major currency. An example of this is the pair XAGEUR (trades Silver against the Euro), or XAUGBP (Gold against the British Pound).

ADVANTAGE OF SPOT METAL FOREX BROKERS

Advantages that come from Spot Metal Forex brokers, since it is believed to be a safe haven.

First advantage is the security that surrounds the nature of spot metal trading; most traders tend to lean towards spot metal trading when the financial markets are volatile and unpredictable. Second advantage is that spot metal Forex brokers help traders to add diversity to their investment portfolio, so that traders will have more than one type of trading instrument.

INTEREST RATES

Precious metals offer a desirable alternative for fixed-income investors, whose investments offer a lower yield when rates are slashed.

Fed decision-making may guide investors towards these safe-haven opportunities, but the Fed’s impact on precious metals shouldn’t be overstated. Of more importance is how rate announcements affect the dollar.

QUANTITATIVE EASING

Precious metals generally perform better in a rising-inflation environment.

This is because quantitative easing, or money-printing, dilutes the value of the currency in circulation, and makes it more expensive to buy assets which are viewed as a reliable store of value.

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