Gold trading is in the form of CFDs and precious metals investing
From the Incas until the time of King Midas, from despotic rulers to the notorious pirates - silver and gold have been considered precious by humans for thousands of years. The first use of gold in coins was recorded in a period dating back to 600 BC, and over the years these precious metals have become increasingly important as investments. In this article, we will explain how you can invest in gold and silver prices through CFD trading and discuss some of the factors that affect the market. are you ready? Let's get started.

How to trade gold and silver in the form of CFDs How to trade gold and silver in the form of CFDs
In the past, if you want to invest in precious metals, you have already purchased and stored. If you want to make large investments, you need a large and safe place to store them. However, these days, many people from all over the world are investing in gold and silver prices through CFDs, from anywhere and anytime they choose. How does this work? Well, CFD means CFD, and this type of trading enables you to invest in the price of a certain precious metal without actually owning it. In trading CFDs you buy "contracts". For example, when currencies trade against gold, one "contract" is the price of one ounce of gold.

Remember: When you trade gold or silver at iFOREX in the form of CFDs, you can benefit from any price change - rise or fall. If you think the precious metal price will rise, choose 'Buy' (Buy Deal). If you think prices will go down, choose 'Sell'.

Trading with leverage
This is a convenient time to discuss leverage - a great tool that enables you to maximize your investment potential by maximizing your buying power. Are you confused? Here's a quick example. The maximum leverage for gold and silver is 1: 400, so if you invest an actual $ 200 in gold, with a leverage of 1: 400, it will be $ 80,000 as a buying power
Factors Affecting Gold Prices and Other Precious Metals
There are many factors that affect gold and silver prices. As with any negotiable financial instrument, supply and demand in the market is the basis, but there are also several other factors. Here are some possible examples:

Use in reserves of central banks to be used in reserves of central banks

The level of confidence in global markets is the level of confidence in global markets

Geopolitical factors geopolitical factors

The value of the US dollar The value of the US dollar

Change in the demand for jewels and jewelery

Use in industry and technologyUse in industry and technology

Discovering New Mining Mines Discovering new mining mines

It is important to remember that, unlike other commodities, gold is often used by central banks to diversify their reserves. So, when a big country like China decides to increase its gold reserves, it is likely to affect the market.

Bretton Woods system and Bretton Woods system
Prices of precious metals fluctuate constantly, moving due to factors mentioned above and many more. For many years gold was, however, an essential part of the global monetary system when the dollar was linked to gold as part of the Bretton Woods system in 1944. The aim of the Bretton Woods system was to regulate monetary relations between different states and states: the United States of America, Canada , Australia, Japan and Western Europe. In August 1971, the United States separated the dollar from gold, ending the Bretton Woods system and making the dollar a free floating currency.
What is the difference between gold and XAU?
Currently, gold is traded around the world according to a daily "spot" price, which is derived from the global over-the-counter gold market. The price symbol for this gold is XAU, which is the same price that iFOREX uses when gold trades in the form of CFDs.

The main elements of silver and gold trading
Precious metal trading with leverage up to 1: 400
There is no need to buy and store gold and silver effectively
There is no commission or fee
The odds of profit from each direction of the price - as it rose or fall
Get personal training and learning resources
Automatically log into exciting trading tools such as Stop Loss and Take Profit
Invest in CFD Gold and Silver CFDs in our advanced platforms