Forex strategy for XAUUSD (Gold / Dollar)

XAU / USD is a trading method to buy and sell gold and US dollars.

It deals with things that are not gold currency, but this can also trade in a currency pair like the dollar yen. However, it conducts trade in units of Troy ounce, not units such as 100,000 currencies.

Money is different from currency, it has rarity value besides currency value. Since gold distribution in the world a little, it is worth and attach with expensive prices. For that, things to consider are the economic and financial situation of the monetary value and the demand for the rare value.

The main markets are Hong Kong, Turich, London and New York, which are often actively traded in these four markets and are established as markets to determine gold indicators. XAU / USD covers gold and dollars, but it also covers other currencies such as XAU / JPY and XAU / EUR.

It suffered rapid crash

It suffered rapid crash

Looking at the past charts of XAU / USD, since around 2000, gold prices have been on the rise. In 2008, it recorded a value of 717.30, which in the year 2011 was the highest value of 1,827.25, the price rose nearly triple. It did not receive much of the impact of the Lehman shock in 2008, and continued to raise prices after that, making it a stable investment product. However, in 2012 that price is coming and going in the vicinity from 1,800 to 1,600. The prices that continued to rise had a big plunge in January 2013.

There are a lot of strategies targeting gold, but some strategies that have steadily increased funds until then have also caused the bankruptcy of accounts due to this crash. And gold price gradually declined little by little, now it has been changing at around 1,000.00 or less.

When using a strategy that responds to gold like XAU / USD, the big merit is a feature that it is strong against global recession. It is hard to be affected by such a global recessions like the impact of the Lehman shock in 2008 was small. It is hard to imagine that the supply of gold will increase rapidly in the future, so its rarity value will continue in the future.

However, since the money that fell for the upward trend has collapsed, it is possible that further collapse will continue in the future. Since money is the country of origin such as Africa, it is linked with the South African Rand, and it may move like an inverse correlation. Also, gold tends to be bought when the economy is bad, as gold prices stabilize as the economy stabilizes, prices tend to decline as the economy rises.

When money is also sold in currency, there is interest rate of the target currency, so swap happens. There are differences depending on Forex companies, but if you trade 10 troy ounces, you will be awarded around -30 yen at buy swap and around -10 yen at selling swap. There will not be much swap, so it will not have much impact on profit and loss.