Spread Betting and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67.3% of retail investor accounts lose money when trading Spread Betting and CFDs with this provider. You should consider whether you understand how Spread Betting and CFDs work and whether you can afford to take the high risk of losing your money

Gold

How can you trade Gold & Silver at Spread Co?

Spot Gold & Spot Silver Spread Betting can be a tax efficient way to speculate and hedge Gold and Silver as Spread Betting is exempt from both Stamp Duty and Capital Gains tax.

Trade Mini Spot Gold from 10p per point (1point = 10 cents). So, every 1 Dollar movement in the price of Gold, the profit or loss would equate to £1.

Trade Spot Gold CFDs or Gold Futures from only 1oz, 23 Hours a day Sunday to Friday.

A Fixed Spread* in-hours from 7am – 10pm London time of 30 Cents/0.30, for detailed information on all Commodity Spread bets and CFD’s, please click here.

Initial margin for Gold is 5% and while leverage can amplify profits it also magnifies losses, as both are calculated on the full size of the position, not your initial margin. 

Always remember to use an effective risk management strategy as changes in Gold prices determine the profits and losses.

Pro charting for all clients

Our trading platforms have all been designed for optimum performance on your device. Whichever one you choose, you’ll be able to trade over one thousand equities, indices, commodities and FX pairs as a CFD or Spreadbet.

You can monitor your trades on multiple devices – place a trade at home, in a web browser and keep an eye on it while you’re out and about with our Mobile App.

Note: Prices quoted above are for indicative purposes only

Track all markets on TradingView

How to trade Gold with Spread Co?

  • Open and fund your account with Spread Co.
  • Choose a position size suitable for you.
  • Select the markets: Spot Gold, Gold Futures, Gold ETF’s.
  • Place a long (buy) or short (sell) order to suit your strategy or trade at market.
Open your account

Gold Trading Strategies are influenced by several key factors:

  • Currency Movements: Gold often has an inverse relationship with the USD. A stronger dollar typically pressures gold prices down, while a weaker dollar can lift
  • Supply and Demand: Jewellery demand, particularly in large markets like China and India, and central bank purchases/sales affect gold’s price direction.
  • Economic Indicators: Inflation rates, interest rates, and geopolitical events contribute to gold’s appeal as a hedge and influence price volatility.
  • Market Sentiment: Shifts in investor confidence, especially during economic instability, often prompt a move toward gold as a safe haven.

How can I analyse Gold makret trends?

The price of Gold is influenced by several key factors that are relatively easy to track:

  • US Dollar Strength: Since gold is priced in US dollars, fluctuations in the currency can significantly impact gold prices.
  • Macroeconomic Data: Keep an eye on important economic indicators and how they compare to existing trends and forecasts.
  • Gold Demand and Futures Positioning: The weekly Commitment of Traders reports from the CFTC provide valuable insights into market positioning.
  • World Gold Council Resources: Their website offers essential information and resources for understanding gold market trends.
Gold Trends

How do geopolitical events impact Gold prices?

Geopolitical events and economic instability significantly influence gold prices. During crises, investors typically sell riskier assets and flock to safe havens like gold, which can drive prices up. Conversely, rising interest rates and bond yields often lead to a decline in gold prices, as gold does not generate income. Investors may prefer income-producing assets, such as US Treasury bonds, during such periods. This competition for capital can negatively affect gold’s demand and pricing dynamics.

What are the risks of trading Gold CFD's?

Trading gold CFDs involves a range of risks. Going against established price trends or overtrading by taking on too many or oversized positions can lead to large losses. Risk management is critical, as inadequate stop-losses or poor risk-reward ratios increase the chances of significant financial setbacks. Gold prices often react swiftly to shifts in market sentiment, which are hard to anticipate.

Additionally, while leverage in gold CFDs can amplify gains, it also intensifies potential losses, requiring disciplined trading strategies.

How can I choose a Gold Trading Stratgey?

A Gold trading strategy depends on factors like account size, trading experience, available trading hours, and time commitment. Many traders begin with basic strategies, such as trading based on the US dollar’s strength and market risk sentiment. This can be enhanced with trend-following techniques, using simple technical analysis like moving averages. For instance, if a faster-moving average crosses above a slower one, it signals upward momentum, while a downward crossover suggests a decline.

How Can I better manage risk in Gold Trading?

Effective risk management in Gold CFD & Spread Betting trading involves several key principles:

  • Avoid Over-Trading: Limit the number of trades to manage risk effectively, especially given gold’s volatility.
  • Correct Position Sizing: Ensure position sizes are appropriate for your account size to mitigate risk exposure.
  • Use Stop Loss Orders: Implement stop losses to cap potential losses, considering slippage.
  • Monitor Economic Indicators: Stay informed about the US dollar’s movements and major macroeconomic data releases to make informed decisions.

By following these guidelines, traders can better manage their risks in gold trading.