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Risks of Gold Trading

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Risks of Gold Trading

Postby gbreinstein » Tue Jul 26, 2011 5:19 am

1-The price of spot gold has been trading opposite with the amount of risk in the market.
2- As traders get nervous about the state of the market and the amount of risk in their current holdings, the price of gold has fallen.
3-One cause of this type of trading environment may be due to the record low of global interest rates. This has pushed traders to buy gold and has helped to bid up the price of the commodity.
4- Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e. put or call) which they contemplate trading and the associated risks.
5-Gold still has some work to do before I would even be interested in taking a long position for a swing trade. But on a short term time frame (intraday charts) gold looks to be forming a low risk setup which I hope unfolds for my subscribers this week.
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