How to Trade Gold 1
HOW
TO TRADE
GOLD
A comprehensive guid
to online gold trading
CFDs are complex instruments, carrying a high level of risk of losing the entire investment as a result of leverage. Purple
Trading is a trade mark (no. 85981) owned and operated by L.F. Investment Limited, 11, Louki Akrita, Germasogeia, CY-
4044 Limassol, Cyprus a licensed Cyprus Investment Firm regulated by the CySEC license number 271/15.
, CONTENTS
How to Trade Gold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 03
What is gold, what are the basic characteristics, and where to trade gold? . . . . . . . . . . . . . . . . . . . . . . . 04
Why do people buy gold? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04
Historical development of the price of gold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 05
What affects the price of gold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07
Gold and inflation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07
The price of gold is determined mainly by the relationship between supply and demand . . . . . . . 07
Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08
Who are the biggest consumers of gold? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Gold and interest rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Correlation of gold with the US dollar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Correlation between gold and HUI Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Correlation between gold and silver. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Gold seasonality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Position of speculators according to the COT report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Strategies for trading gold based on technical analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Trading in the direction of the trend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Using a pause to gain strength . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Trend correction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Ebook key takeaways: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Exercise key . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
, How to Trade Gold 03
HOW TO TRADE GOLD
It is often said that gold keeps its value in times of But will gold prices continue to grow? The price of
crisis, which is the reason why many investors gold is subject to far more effects than just
include it in their portfolios. The year 2020 during economic uncertainty. You may wonder how, for
which we were experiencing an unprecedented example, the price of gold will be affected by
crisis caused by the coronavirus could serve as inflation? Or if there are any seasonal effects that
a good example. From January to the end of indicate when gold usually rises and when, on the
October 2020, the price of gold rose by about contrary, a decline can be expected. And last but
24%. In August 2020, the price of gold even not least, what is the relationship between gold
created a new all-time high reaching $ 2,067 per and the US dollar? Don‘t worry, all these questions
troy ounce. (and many more) will be answered in this ebook.
In August 2020 the price of gold had reached its
historical peak
There have been many popular myths about gold that are easy to succumb to. However, in many cases,
these myths are not based on objective facts. And because we at Purple Trading care that our clients
always get the best information (and we all know that in the trading industry good quality information can
be weighted in gold), we decided to approach this ebook really thoroughly. That‘s why it includes
meticulous analyses, charts and reliable, well sourced information. So let’s begin!
CFDs are complex instruments, carrying a high level of risk of losing the entire investment as a result of leverage. Purple
Trading is a trade mark (no. 85981) owned and operated by L.F. Investment Limited, 11, Louki Akrita, Germasogeia, CY-
4044 Limassol, Cyprus a licensed Cyprus Investment Firm regulated by the CySEC license number 271/15.
HOW
TO TRADE
GOLD
A comprehensive guid
to online gold trading
CFDs are complex instruments, carrying a high level of risk of losing the entire investment as a result of leverage. Purple
Trading is a trade mark (no. 85981) owned and operated by L.F. Investment Limited, 11, Louki Akrita, Germasogeia, CY-
4044 Limassol, Cyprus a licensed Cyprus Investment Firm regulated by the CySEC license number 271/15.
, CONTENTS
How to Trade Gold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 03
What is gold, what are the basic characteristics, and where to trade gold? . . . . . . . . . . . . . . . . . . . . . . . 04
Why do people buy gold? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04
Historical development of the price of gold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 05
What affects the price of gold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07
Gold and inflation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07
The price of gold is determined mainly by the relationship between supply and demand . . . . . . . 07
Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08
Who are the biggest consumers of gold? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Gold and interest rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Correlation of gold with the US dollar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Correlation between gold and HUI Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Correlation between gold and silver. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Gold seasonality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Position of speculators according to the COT report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Strategies for trading gold based on technical analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Trading in the direction of the trend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Using a pause to gain strength . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Trend correction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Ebook key takeaways: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Exercise key . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
, How to Trade Gold 03
HOW TO TRADE GOLD
It is often said that gold keeps its value in times of But will gold prices continue to grow? The price of
crisis, which is the reason why many investors gold is subject to far more effects than just
include it in their portfolios. The year 2020 during economic uncertainty. You may wonder how, for
which we were experiencing an unprecedented example, the price of gold will be affected by
crisis caused by the coronavirus could serve as inflation? Or if there are any seasonal effects that
a good example. From January to the end of indicate when gold usually rises and when, on the
October 2020, the price of gold rose by about contrary, a decline can be expected. And last but
24%. In August 2020, the price of gold even not least, what is the relationship between gold
created a new all-time high reaching $ 2,067 per and the US dollar? Don‘t worry, all these questions
troy ounce. (and many more) will be answered in this ebook.
In August 2020 the price of gold had reached its
historical peak
There have been many popular myths about gold that are easy to succumb to. However, in many cases,
these myths are not based on objective facts. And because we at Purple Trading care that our clients
always get the best information (and we all know that in the trading industry good quality information can
be weighted in gold), we decided to approach this ebook really thoroughly. That‘s why it includes
meticulous analyses, charts and reliable, well sourced information. So let’s begin!
CFDs are complex instruments, carrying a high level of risk of losing the entire investment as a result of leverage. Purple
Trading is a trade mark (no. 85981) owned and operated by L.F. Investment Limited, 11, Louki Akrita, Germasogeia, CY-
4044 Limassol, Cyprus a licensed Cyprus Investment Firm regulated by the CySEC license number 271/15.
