Gold Spread Betting
Indicative Gold prices from Finspreads:
Click on the tabs to see the various commodities, forex and stock market index prices.
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A gold price comparison table looking at the 'spread size' and minimum stakes for daily and futures markets.
| Gold Daily - Spread Size |
4 |
5 |
5 |
4 |
5 |
4 |
4 |
7 |
| Gold Daily - Min Stake |
£1 |
$0.60 |
£1 |
£0.1 |
£1 |
£1 |
£1 |
£1 |
| Gold Future - Spread Size |
6 |
8 |
6 |
6 |
7 |
6 |
6 |
14 |
| Gold Future - Min Stake |
£1 |
$0.60 |
£1 |
£0.1 |
£1 |
£1 |
£1 |
£1 |
Comparison Notes.
This table is not meant to be inclusive, gold spread betting may be available through other companies.
Gold Market Analysis & News
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| 17-May-13 |
[4:40pm] There is a new financial spread betting video discussing a range of topics including gold, please see Financial Spread Betting Video: Can Stock Markets Keep Hitting New Highs Despite Mixed Economic Data?.
Update by Michael Hewson, Senior Market Analyst, 
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| 17-May-13 |
[4:14pm] The scourging of the gold bulls continues unabated, with the metal falling to a one-month low.
Central banks sitting on large piles of the stuff looked pretty clever when the price was surging.
Now that it's falling I fear some might begin to reconsider their position, which could easily give rise to a new wave of selling.
Update by Chris Beauchamp, Market Analyst, 
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| 17-May-13 |
[3:34pm] The sell-off in gold has continued today with the bears taking control again.
The metal is now trading 18% lower than at the start of the year and appears to be giving back all of the bounce we have seen since reaching a two year low in the middle of April.
With equities continuing to rally as the economy show signs of recovery there appears to be very little for gold traders to get excited about as we finish the week on a low note.
Update by Toby Morris, Senior Sales Trader,
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| 17-May-13 |
[7:34am] After the Wall Street close, Gold was down $6.1 to $1386.9.
The precious metal was below its 20DMA (@ $1445) and below its 50DMA (@ $1512).
Update by 
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| 17-May-13 |
[7:34am] Gold Technical Analysis (30 mins chart)- Gold pivot point: $1,399.00
- Our preference: SHORT positions below $1,399 with targets @ $1,370 & $1,346.
- Alternative scenario: The upside penetration of $1,399 will call for a rebound towards $1,418 & $1,431.
Comment: The 50-perio DMA is heading down. As long as the resistance at $1,399 is not surpassed, the risk of the break below $1,370 remains high.
Update by
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| 17-May-13 |
[6:23am] News that billionaire George Soros had reduced his gold holdings in exchange-traded products piled on the misery for gold investors yesterday.
The precious metal will not have been helped by the strengthening dollar and we are currently trading at the $1,380 level for the June futures contract.
Update by Jonathan Sudaria, Market Dealer, 
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| 17-May-13 |
[5:00am] Gold for immediate delivery is trading 0.4% lower, at $1,381.16 per ounce. Gold for June delivery shed 0.7% or $9.30 to close at $1,386.90 per ounce yesterday, as investors remained bearish on gold.
This came even after data showed that US consumer price inflation dropped more-than-expected in April and first time claims for US unemployment benefits rose more-than-anticipated during the week ended 11 May 2013.
The precious metal also came under pressure on news that Soros Fund Management LLC slashed its holding in the SPDR Gold Trust by 12% as of 31 March from the previous quarter.
Meanwhile, a World Gold Council report revealed that demand dropped 13% in the first quarter from a year earlier.
Yesterday, copper 3-month futures declined 0.3% or $19.5, to end at $7,125.50/MT. Aluminium 3-month futures ended 0.6% or $10.0 higher at $1,785.00/MT.
Update by Ishaq Siddiqi, Market Analyst, 
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This content is for information purposes only and is not intended as a recommendation to trade. Nothing on this website should be construed as investment advice.
Unless stated otherwise, the above time is based on when we receive the data (London time). All reasonable efforts have been made to present accurate information. The above is not meant to form an exhaustive guide. Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.
Risk Warning: Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary
For the gold market commentary archives see Gold Trading Archive.
Advert:
Gold Spread Betting, sponsored by FinancialSpreads.com.
You can spread bet on Gold with
Financial Spreads.
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Where Can I Spread Bet on Gold? |
Investors can spread bet on Gold with the following providers:
Live Spread Betting Prices and Charts for Gold |
We do show reasonably accurate spread betting prices for the daily gold market further up this page, please see gold prices.
The following CFD chart and prices also give a useful guide to the gold market.
The Plus 500 chart above usually tracks the gold futures contract.
If you want live gold spread betting prices and charts, you will generally need a spread betting account.
Spreads accounts with Financial Spreads and Capital Spreads give you access to both the daily and futures markets (accounts are subject to status, suitability and credit checks).
If you apply for an account and your application is approved, you can log on to review the live trading prices and charts. Usually, these are free. Having said that, you're likely to receive the odd dull email or boring sales call from the spread betting firm.
Of course, if you decide to trade then, before you start, you should be aware that contracts for difference and spread trading do involve a high degree of risk to your funds and you can incur losses that exceed your initial deposit.
Professional Level Charts for Gold |
Even though charts differ across the various providers, to help you with your trading analysis, the charts generally come with useful features and tools, including:
- A number of different time intervals such as 1 minute, 2 minutes, 10 minutes, 1 hour, 1 day, 1 week etc.
- A variety of displays such as line and candle charts
- Drawing options such as Trendlines, Fibonacci Arcs, Fans and Time Zones
- Technical indicators and chart overlays such as MACD, Bollinger Bands, RSI, TSI, % Price Oscillator etc.
Charts offered by Financial Spreads also include other benefits like:
- BackTesting and Analysis tools
- Automated alerts when the markets reach a specific level
Example gold chart on the Financial Spreads platform
The financial spread betting companies below provide users with real time prices and charts:
Advert:
Gold Spread Betting, sponsored by FinancialSpreads.com.
You can spread bet on Gold with
Financial Spreads.
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Where Can I Spread Bet on Gold for Free? |
Investing, by its very nature, comes with risks. However, if you'd like to use a Test Account, which lets you access charts and practice financial spread betting, see Free Demo Account below.
Also, remember that in the UK, spread betting is currently tax free*, i.e. there is no income tax, capital gains tax or stamp duty.
If you want a free commodities trading platform, note that investors can spread bet on Gold without paying any commissions or brokers' fees with firms such as:
If you'd like to open a free Practice Account where you can get a better understanding of financial spread betting, and markets like Gold, then have a look at:
These companies currently offer a Demo Account which investors can use to test new theories, check charts and practice using trading orders.
How to Spread Bet on the Daily Gold Market |
As with a lot of markets, investors can spread bet on commodities, such as Gold, to go up or down.
Some spread betting companies offer a daily Gold market as well as a futures market.
If we look at Financial Spreads, we can see they are currently showing the 'Gold Rolling Daily' market at $1,771.6 - $1,772.0.
This means an investor could spread bet on Gold:
 Going above $1,772.0, or
 Going below $1,771.6
When spread betting on Gold you trade in £x per $0.1. So, if you invested £3 per $0.1 and Gold moves $3.8 then that would alter your P&L by £114. £3 per $0.1 x $3.8 = £114.
Rolling Daily Commodities Markets
Note that this is a Rolling Daily Market. As a result, in contrast with commodities futures markets, there is no expiry date. If you leave your trade open at the end of the day, it will roll over into the next trading session.
If your position is rolled over and you are financial spread betting on the market to:
Go up - then you will be charged a small overnight financing fee, or
Go down - then a small payment is normally credited to your trading account
For a fully worked example see Rolling Daily Spread Betting.
Gold Rolling Daily Example |
Taking the spread of $1,771.6 - $1,772.0, let's assume that:
- You've completed your analysis of the commodities markets, and
- You feel that the Gold market will push higher than $1,772.0
If so, you might decide to go long of the market at $1,772.0 for a stake of £3 per $0.1.
With this trade you therefore make a profit of £3 for every $0.1 that Gold increases higher than $1,772.0. Having said that, this trade also means that you will make a loss of £3 for every $0.1 that the Gold market decreases below $1,772.0.
Put in other words, if you 'Buy' a spread bet then your P&L is worked out by taking the difference between the closing price of the market and the initial price you bought the spread at. You then multiply that difference in price by the stake.
Therefore, if after a few hours the market rose, you may decide to close your spread bet in order to take your profit.
Taking this a step further, if the market moved up to $1,776.1 - $1,776.5 then, to close your trade, you would sell at $1,776.1.
So, with the same £3 stake your profit would work out as:
Profit / loss = (Final Price - Initial Price) x stake
Profit / loss = ($1,776.1 - $1,772.0) x £3 per $0.1
Profit / loss = $4.1 x £3 per $0.1
Profit / loss = £123 profit
Speculating on commodities, by spread trading or otherwise, is never easy. In this case, you had bet that the metal would increase. Naturally, the commodity could decrease.
Should the Gold market fall, you may choose to close your spread bet and limit your losses.
If the spread pulled back to $1,768.5 - $1,768.9 then you could close your position by selling at $1,768.5. If so, your loss would be calculated as:
Profit / loss = (Final Price - Initial Price) x stake
Profit / loss = ($1,768.5 - $1,772.0) x £3 per $0.1
Profit / loss = -$3.5 x £3 per $0.1
Profit / loss = -£105 loss
Note - Gold Rolling Daily spread betting market taken as of 18-Sep-12.
Advert:
Gold Spread Betting, sponsored by FinancialSpreads.com.
You can spread bet on Gold with
Financial Spreads.
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How to Spread Bet on Gold Futures |
As with many of the world's markets, investors can spread bet on commodities, like Gold, to either rise or fall.
If you log on to Capital Spreads, you can see that they are valuing the Gold December Futures market at $1,773.7 - $1,774.3. As a result, an investor can spread bet on Gold to:
Close higher than $1,774.3, or
Close lower than $1,773.7
On the closing date for this 'December' market, 27-Nov-12.
Like the Rolling Daily market, when putting a spread bet on Gold Futures you trade in £x per $0.1. Therefore, if you decided to have a stake of £5 per $0.1 and Gold moves $2.0 then that would alter your profit/loss by £100. £5 per $0.1 x $2.0 = £100.
Now, if you think about the spread of $1,773.7 - $1,774.3 and make the assumptions that:
- You have analysed the commodities markets, and
- Your analysis leads you to feel that the Gold market will finish above $1,774.3 by 27-Nov-12
Then you may want to go long of the market at $1,774.3, for a stake of £2 per $0.1.
Therefore, you win £2 for every $0.1 that Gold rises higher than $1,774.3. Having said that, it also means that you will make a loss of £2 for every $0.1 that the Gold market moves lower than $1,774.3.
Put another way, if you were to 'Buy' a spread bet then your profit/loss is worked out by taking the difference between the final price of the market and the price you bought the spread at. You then multiply that difference in price by the stake.
As a result, if, on the expiry date, Gold closed at $1,781.4, then:
P&L = (Closing Value - Opening Value) x stake
P&L = ($1,781.4 - $1,774.3) x £2 per $0.1
P&L = $7.1 x £2 per $0.1
P&L = £142 profit
Speculating on commodity markets can work against you. With the above, you had bet that the Gold futures market would rise. However, the futures market could fall.
If Gold had fallen, closing lower at $1,768.1, you would end up losing this trade.
P&L = (Closing Value - Opening Value) x stake
P&L = ($1,768.1 - $1,774.3) x £2 per $0.1
P&L = -$6.2 x £2 per $0.1
P&L = -£124 loss
Note: Gold December Futures market quoted as of 18-Sep-12.
Advert:
Gold Spread Betting, sponsored by FinancialSpreads.com.
You can spread bet on Gold with
Financial Spreads.
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- Gold Prices vs Supply and Demand
Gold is one of the oldest commodities traded by man and one of the world's biggest markets and there is as much gold as there has ever been.
One of the unusual things about gold as a commodity is that it isn't consumed. Most other commodities end up being used as a power source, used to create plastics or foodstuffs. Gold however, is turned into jewellery or used for various industrial reasons. It doesn't disappear, it simply exists in a different format.
In broad terms, there is the same amount of gold in the world as there ever has been. Given that all of the world's gold still exists, it could theoretically come back onto the market at any time.
- Supply Rarely Affects the Price of Gold
The price of many commodities is largely determined by their supply. If Brazil's coffee harvest fails, it's likely that the price of coffee will rise. There is a stable demand for coffee but the supply is far less stable.
Wars and civil unrest in oil producing countries can threaten the supply of crude and, when these threats materialise, they typically push the price per barrel higher.
Gold however, is different. It is thought that the annual supply of gold comfortably meets the demand. And, as we have discussed, existing gold can come back to the market at any time.
Therefore, it's not the supply of the commodity itself that leads to large price movements, but the changes in demand for gold as an investment.
There are exceptions to this though, e.g. in 2008, South Africa experienced large scale power generation/distribution problems. When these occurred, extraction levels in the country's gold mines fell and we saw price spikes.
- Gold Prices Driven by Market Sentiment
The true value of gold doesn't necessarily increase or decrease which makes it very different from most other traded commodities.
The price of gold is mainly influenced by the desire to own gold, i.e. market sentiment, not by the annual production. Gold tends to be a 'safe-haven' asset when other investments are deemed too volatile or too risky. Investors often turn to gold:
- When they lose faith in the stock market
- After a natural disaster
- During war or civil unrest
- When they lose faith in their currency
Gold is seen as a strong and solid asset that will always have a value in exchange for food, a product or service.
Using Gold as a Hedge
If stock market returns, or the return on bonds or bank deposits are low, investors will often turn to gold. It is perceived to be a stable, reliable asset which always maintains some value.
So, when interest rates are low and stock markets are in the doldrums, investors will often buy gold. And, of course, the increased demand to own gold means that the price of the commodity will generally increase.
Whilst gold is seen as a safe-haven during difficult economic periods, its price can still fluctuate significantly on a daily basis.
- Gold Prices are Influenced by Large Central Banks
At the end of 2004, central banks and official organisations held 19% of all above-ground gold in the form of official gold reserves.
Gold prices are influenced by sales and acquisitions of gold by the International Monetary Fund and by large central banks.
To try and keep gold prices more stable, an agreement was made in September 1999 which limited gold sales by major economies (in Europe, America, Australia, Japan and the IMF). This was designed to prevent a country selling large quantities of its gold reserves, leading to a fall in gold prices which would affect all nations' reserves.
Conversely, when countries begin to increase their gold reserves, gold prices will generally rise. In recent years, both China and Russia have expressed an interest in increasing their gold reserves and, for example, gold prices increased significantly when India purchased 200 metric tons of gold in 2009.
'About the Gold Market' by PaddyPowerTrader
Gold Prices and the Forex Market |
Foreign exchange rates can have a big impact on commodities.
Most commodities, including the key metals, energies and softs are priced in US dollars. Therefore, you can often see large price movements just because the US dollar has gained on the pound or vice versa.
With spread betting, you typically trade in the currency of your choice. If you're based in the UK and want to trade the Dow Jones, you can do so in Pound Sterling/point. If you want to speculate on gold you would do so in Pound Sterling/$0.1 (see gold trading example).
Because gold is priced in US dollars, if the price of the dollar falls against the other major currencies then, all things being equal, we can expect the price of gold to rise. And likewise, when the dollar gets stronger, we can expect the price of gold to fall.
Where Can I Find a Gold Trading Platform/Software? |
Some of the firms offer software / trading platforms you have to download, but most offer free web-based platforms that allow easier access from home, the office and most other places with internet access.
The companies listed in the above prices and charts section all offer web-based platforms where you can trade Gold.
Advert:
Gold Spread Betting, sponsored by FinancialSpreads.com.
You can spread bet on Gold with
Financial Spreads.
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Risk Warning: Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.
'Gold Spread Betting' by DB, updated 17-May-13
For related pages also see:
Commodities Spread Betting, updated 17-May-13
Commodities spread betting guide with live prices and charts. Plus a daily commodities market review, commodities spread betting comparison, where to trade commodities commission-free and tax-free* as well as...read article: Commodities Spread Betting.
Gold Spread Betting, updated 17-May-13
Gold spread betting guide with live prices and charts. Plus a daily gold market review, gold spread betting comparison, where to trade gold commission-free and tax-free* as well as...read article: Gold Spread Betting.
Crude Oil Spread Betting, updated 17-May-13
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Commodities Trading, updated 16-May-13
Compare commodities spreads. Compare Crude Oil and Gold spreads. The latest commodities trading news, where to find free Commodities Trading charts and...read article: Commodities Trading.
Gold Trading, updated 16-May-13
Compare Gold spreads, find free Gold Trading plus your Gold trading questions answered, tips on getting free Gold charts, real time prices and...read article: Gold Trading.
Crude Oil Trading, updated 16-May-13
Find free Crude Oil Trading plus your Crude Oil trading questions answered, tips on getting free Crude Oil charts, real time prices and...read article: Crude Oil Trading.
Silver Spread Betting, updated 17-May-13
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Copper Spread Betting, updated 17-May-13
Guide to spread betting on copper futures: live copper futures charts and prices, where to trade copper futures commission-free and tax-free*, how to spread bet on copper as well as...read article: Copper Spread Betting.
Platinum Spread Betting, updated 08-May-13
Guide to spread betting on platinum futures: live platinum futures charts and prices, where to trade platinum futures commission-free and tax-free*, how to spread bet on platinum as well as...read article: Platinum Spread Betting.
Commodities Trading News, updated 17-May-13
An index of commodities trading articles covering: commodities futures news, commodity market analysis & spread betting on commodities futures. Plus commodities trading strategies, commodities charts, price comparisons and...read article: Commodities Trading News.
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