Trade CFDs with CPT Markets UK
Precious metals offer insights into economic health and are often viewed as a safe haven during times of economic or political uncertainty. We offer trading in gold and silver.
For traders looking for some protection during times of market turmoil, precious metals trading is an important part of their portfolio, due to their lasting intrinsic value. They are also viewed as an inflation hedge
Given that the precious metals are traded against the US Dollar, they are particularly susceptible to the value of the greenback.
When the dollar falls, precious metals are both a good place to store its value and less costly for other countries to purchase – meaning it is likely to push the price of precious metals higher.
How to trade Precious Metals
At CPT trading, precious metals are quoted against the US Dollar. This means that when you trade gold, for example, you speculate on whether the price of an ounce of gold will rise or fall in relation to the US Dollar. Let’s assume that gold is trading at $1,270.60. You think that the price is about to appreciate and buy 100 oz (or 1 lot) of XAU/USD.
The price moves higher to 1,275.80 and you decide to sell. Your profit is the difference between the closing and opening price (5.20) multiplied by the number of oz (100). Well done! You just made $520.