Expand your
investment portfolio by trading
Derivatives on Gold and
other Spot Metals.
Trade Derivatives on Gold and other spot metals with HotForex and get a competitive edge in the dynamic precious metals market.
Account base currency: USD
Position: Open 10
lots BUY XAUUSD at 1,316.99
1 Lot size: 100
Ounces
Margin requirement: 0.5% of Notional
value
Notional value is: 10 * 100 *
1,316.99 = 1,316,990 USD
Margin
required is: 1,316,990 USD * 0.005 =
6,584.95 USD
Highly
valued since ancient times, precious metals, and
gold in particular, have always been associated with
monetary wealth.
On the financial markets,
precious metals investments tend to hold their value
over long periods of time.
Thus they provide a
long-term safe haven for commodity
traders.
Factors affecting precious metals’
prices:
Supply
and Demand
With the increase of demand,
metal prices rise whereas when the demand is weak
the value of precious metals declines.
Value of
the U.S. Dollar
As the precious metals
are dollar-denominated their price is generally
inversely related to the value of the US dollar.
Inflation
Inflation has a direct effect
on the price of precious metals. Generally, rising
levels of inflation tend to raise the price of
precious metals.
Industrial demand
Technology and
industrial uses for gold, such as the demand for
jewelry and electronics, can make the price of
precious metals rise.
Investing in precious metals can help traders hedge against market volatility, political uncertainty, and economic collapse. It can also be an important part of a diversified long-term investment portfolio.