How to trade gold in Saudi Arabia

the gold market provides high liquidity and excellent opportunities for profit in almost all environments due to its unique location within the economic and political systems in the world. While many people choose to own the metal directly, the speculative through futures, stock markets and options offer incredible leverage with calculated risk.

Market participants often fail to take full advantage of gold price fluctuations because they have not learned the unique characteristics of global gold markets or hidden risks that can rob the profits. In addition, not all investment vehicles are created equally: some gold tools are likely to produce consistent results for others.

It is not difficult to learn the circulation of the yellow metal, but activity requires a set of skills for this commodity. Beginners should take a serious look, but experienced investors will benefit from integrating these four strategic steps into day-to-day trading. At the same time, they are tested until complexities of these complex markets become used.

What drives gold prices

As one of the oldest coins on the planet, gold has become an integral part of the world and has deeply integrated itself into the spirit of the financial world. Almost everyone has an opinion about the yellow metal, but gold itself reacts only to a limited number of price stimuli. Each of these forces is divided into the center in the polarity that affect the emotions, volume and direction density:

- Inflation and deflation
- Greed and fear
- Supply and demand

Market players face high risks when they trade gold as a reaction to one of these poles, while in fact there is another move to the price. For example, let's say sales have hit global financial markets, and gold has started a strong rally. Many traders assume that fear moves gold and jumps, believing that the emotional crowd will carry a higher price blindly. However, inflation may actually have caused stocks to fall, attracting more technical crowds to sell in return for a stronger gold rally.

Groups of these forces play a permanent role in global markets and develop long-term themes that track trend trends and long declines. For example, the economic stimulus of the Federal Reserve (FOMC), which began in 2009, initially had a weak impact on gold, as market players focused on high levels of fear caused by the economic meltdown in 2008. However, this encouraged quantitative easing On deflation, the establishment of the gold market and other commodity groups for a significant reversal.

This shift did not happen immediately because of the ongoing deflation attempt, with financial assets and commodities declining back towards historical means. In the end, gold rose and turned into a decline in 2011 after the completion of the refining process, central banks intensified their quantitative easing policies. VIX retreated to lower levels at the same time, indicating that fear is no longer an important engine for the market.

Understanding the public.

Gold attracts many crowds with diverse and often conflicting interests. Gold supporters stand at the top of the crowd, collects material bullion and allocates a large part of family assets to gold stocks, options and futures. These are long-term players, who are seldom discouraged by the downward trend, who in the end take away less ideological players. In addition, retail participants comprise almost the total number of gold remnants, with little money allocated to the long side of the precious metal.

Gold proponents add enormous liquidity while keeping the minimum under futures and gold stocks as they provide a continuous supply of interest buying at lower prices. They also serve the opposite purpose of providing effective entry to short sellers, especially in emotional markets when one of the three core forces is drawn in favor of strong buying pressure.

In addition, gold attracts massive hedging activity by institutional investors who buy and sell currencies and bonds in dual strategies known as risk strategies and non-risk strategies. "Funds create baskets of tools that are compatible with growth (risk) and safety (non-risk), these groups are traded through lightning-fast algorithms, and are particularly popular in markets with severe conflicts where public participation is less ususally.

Read the long term chart.

Take some time to learn the golden graph from home and abroad, starting with a long-term history dating back at least 100 years. In addition to truncating trends that have continued for decades, the metal has also fallen for incredibly long periods, leading to the denial of profits on gold bullion. From a strategic point of view, this analysis determines the price levels to be monitored if gold returns to test.

Choose your place.

Liquidity Tracks Gold trends, where they increase as they move up or down sharply and decrease during periods of relative calm. This swing affects futures markets more than stock markets do, due to lower average participation rates. The new products offered by the CME Group in Chicago in recent years have not improved this equation significantly.

The gold market traded profitably in four steps. First, learn how the three polarity affect the majority of gold buying and selling decisions. Second, learn about the diverse crowds that focus on gold trading, hedging and ownership. Third, take the time to analyze the long and short term gold charts, focusing on the basic price levels that may be considered.
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