Gold Trading
Where Can I Open a Gold Spread Trading Account? |
Many spread trading accounts offer access to thousands of financial markets including commodities, like gold and crude oil, but also stock market indices, forex and individual shares.
Spread trading provides a tax free* investment option, two way trading and no commissions, however, some spread trading companies, like Financial Spreads, also offer easy access with 24 hour trading and state-of-the-art platforms.
| 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.
Advantages of Gold Spread Trading |
Gold spread trading has several important advantages over more traditional investment options:
- Spread trading is tax free*. You do not pay income tax, capital gains tax or stamp duty on any of your trades.
- When spread trading, you deal directly with a spread trading firm and so your trades are normally commission free with no broker’s fees. This can help to keep your trading costs down.
- A single spread trading account can offer a wide range of financial markets from commodities, like gold, crude oil and copper, to stock market indices, currencies, shares, bonds and even interest rates.
- When spread trading, you are merely speculating on the future price of the market and so you can trade on the gold to go down as well as up. This is in contrast with traditional investment formats which limit investors into trading on markets to rise.
Gold Spread Trading Example |
If you are going to spread trade on a commodity such as Gold then, on visiting a spread trading site like Financial Spreads, you would currently see the Gold Rolling Daily market priced at $1,208.7 - $1,209.2.
This means you can speculate on Gold moving higher than $1,209.2 or moving lower than $1,208.7.
With financial spread trading, investors trade on every unit the market moves up or down; with Gold spread trading markets a unit is $0.1 of the commodity's price movement.
As an example, you might decide to trade £2 for every $0.1 the price of Gold goes up or down.
Note that you can also spread trade on Gold in Dollars or Euros, i.e. €x per $0.1.
You should note that this example considers a 'Rolling Daily Market' and so there is no predetermined settlement date for this market. As a result, if the trade is still open at the end of the trading day, it simply rolls over to the next trading day.
If your trade does roll over and you are speculating on the market to:
- Rise - then you would normally pay a small financing fee, or
- Fall - then a small payment is often credited to your account
To learn more about Rolling Daily Markets please see Rolling Daily Spread Trading.
Spread Trading on Gold to Go Up |
If you were to go long of Gold at $1,209.2 and the commodity went up then the spread might change to $1,215.2 - $1,215.7. If that happened, you might decide to close your trade for a profit at $1,215.2.
Profits (or Losses) = (final level of the market - opening level of the market) x stake per $0.1
Profits (or Losses) = ($1,215.2 - $1,209.2) x £2 per $0.1 stake
Profits (or Losses) = $6.0 x £2 per $0.1
Profits (or Losses) = £120 profit
Financial markets also move down, if the price of Gold was to drop to $1,203.5 - $1,204.0, you could decide to close your position to limit your losses. In that case, you would sell at $1,203.5.
With the same £2 per $0.1 stake:
Profits (or Losses) = (final level of the market - opening level of the market) x stake per $0.1
Profits (or Losses) = ($1,203.5 - $1,209.2) x £2 per $0.1 stake
Profits (or Losses) = -$5.7 x £2 per $0.1
Profits (or Losses) = -£114 loss
Spread Trading on Gold to Go Down |
An important benefit of spread trading is that you can short the markets.
At the beginning of this example, the spread was $1,208.7 - $1,209.2.
If you were to sell Gold at $1,208.7 and the market fell then the spread might become $1,201.6 - $1,202.1. If so, you could close your trade for a profit by buying at $1,202.1.
Profits (or Losses) = (opening level of the market - final level of the market) x stake per $0.1
Profits (or Losses) = ($1,208.7 - $1,202.1) x £2 per $0.1 stake
Profits (or Losses) = $6.6 x £2 per $0.1
Profits (or Losses) = £132 profit
The markets can of course rise, if the gold market had moved up to, for example, $1,214.5 - $1,215.0, you may want to close your trade in order to limit your losses. If that were to happen, you would buy at $1,215.0.
You would do this with the same £2 per $0.1 stake:
Profits (or Losses) = (opening level of the market - final level of the market) x stake per $0.1
Profits (or Losses) = ($1,208.7 - $1,215.0) x £2 per $0.1 stake
Profits (or Losses) = -$6.3 x £2 per $0.1
Profits (or Losses) = -£126 loss
Gold Rolling Daily market quoted as of 09-Jul-10.
Where Can I Find Gold Trading Charts? |
Many spread trading companies offer candlestick charts on the majority of their financial markets, as well as a wide range of historical data and analysis.
For example, you can make use of gold spread trading charts with a variety of Moving Averages and other statistics such as Bollinger Bands.
The charts can also show data over a variety of time scales, ranging from minutes to hours, days or even weeks depending on your personal investment strategy.
For a real-time chart see: live gold futures chart.
Example Gold Chart
Gold Trading Companies – Account Services Comparison |
The companies detailed below all offer gold spread trading markets as well as all the usual benefits of spread trading such as tax free*, commission free trading, a wide range of financial markets and two way trading.
| Online Application |
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| Credit Account |
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| Deposit Account |
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| Stop Loss Available |
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| Automatic Stop Loss |
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| 24 Hour Trading |
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| FSA Authorised and Regulated |
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| Candlestick Charts |
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Comparison Notes.
Gold Trading and Risk Management |
Investing in the gold spread trading markets can be exciting, particularly when thinking about the amount of money you might make. Profits are rarely seen as a bad thing. Nevertheless, we should all understand that we can lose money as well.
Naturally, as with all investing, be it on shares, pensions or CFDs, there is a downside and with spread trading you need to be careful because you can lose more than you initially invested.
The following risk warning also provides you with some other points to think about, "Spread trading does carry a high level of risk to your capital. Before trading, ensure that spread trading matches your investment objectives. Familiarise yourself with the risks involved. Seek independent advice where necessary".
At the same time though, you are able to put limits on your trades to help reduce your potential losses without impacting your upside, for more information see Stop Loss Orders.
Another important aspect of risk management to consider is using smaller stake sizes such as £1 per point or $1 per point. This is an all too often overlooked method for reducing your risks and is something that any investor should bear in mind.
Financial Spreads » "With FinancialSpreads.com you get all the advantages of
Spread Trading as well as commission free CFD Trading on 2,500+ markets, 24 hour trading, professional level charts and..." read
Financial Spreads review.
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Gold Trading - 23 May 2013 |
| 23-May-13 |
[7:38am] Gold Technical Analysis (30 mins chart)- Gold pivot point: $1,382.00
- Our preference: SHORT positions below $1,382 with $1,350 & $1,336 in sight.
- Alternative scenario: The upside penetration of $1,382 will call for $1,401 & $1,419.
Comment: The break below $1,382 is a negative signal that has opened a path to $1,350.
Update by 
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| 23-May-13 |
[7:38am] After the Wall Street close, Gold was down $6.7 to $1369.7. The precious metal was below its 20DMA (@ $1436) and below its 50DMA (@ $1495).
Update by
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| 23-May-13 |
[6:30am] Gold investors must have surely cheered when Ben Bernanke warned about tightening too soon.
However, few were expecting such a quick u-turn, with the Fed Chairman acknowledging the chance of a scale back in QE if the pace of jobs recovery allows it.
As a result, the precious metal reversed course, dropping $3.8 to $1,369.6 for the day.
Update by Jonathan Sudaria, Market Dealer, 
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| 23-May-13 |
[5:00am] Gold for immediate delivery is trading 0.2% higher, at $1366.25 per ounce.
Gold for June delivery fell 0.7% or $10.20 to close at $1,367.40 per ounce yesterday, after Bernanke's comments signalled a potential tapering of the existing QE measures.
The precious metal declined further in electronic trading and fell as low as $1,353.10.
This followed the minutes from the Fed's last meeting revealed that a “number” of central bank officials were willing to downsize the stimulus measures in place as soon as their next meeting in June.
Yesterday, copper 3-month futures advanced 1.4% or $100.0, to end at $7,510.00/MT. Aluminium 3-month futures ended 0.3% or $5.0 lower at $1,800.00/MT.
Update by Ishaq Siddiqi, Market Analyst, 
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| 23-May-13 |
[5:00am] Gold is trading -$3.05 (-0.22%) lower at $1364.35 ($/oz)
Update by
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For more see our 'latest gold trading reports'.
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.
'Gold Trading' by DB, updated 23-May-13
For related pages also see:
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Gold Spread Betting, updated 24-May-13
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Crude Oil Spread Betting, updated 24-May-13
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Commodities Trading, updated 23-May-13
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Crude Oil Trading, updated 23-May-13
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Silver Spread Betting, updated 24-May-13
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Copper Spread Betting, updated 24-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.
Commodities Trading News, updated 17-May-13
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