Gold’s Historical record as a store of value despite wars, natural disasters. and the rise and fall of great empires means that it is generally seen as the ultimate “safe-haven” asset. While it is true that interest in gold has declined from the 80s till 00s, in 2011 we saw gold hitting an all-time high price with over 1900$ for ounce. 

Investors sometimes prefer to take physical posession of gold, so they are sure they can access it at all times, but that strategy can be very money draining due additional costs. A better option for traders is to focus on trading the current “spot” price of gold, which is based on the price of the most active futures contracts on the COMEX (commodities exchange) in New York. 

The best place to start gold trading is with professional brokers

Gold is a highly volatile market, which means that the potential growth is especially high. Although no longer a safe haven as it was traditionally, gold is still the investment instrument of choice for periods of high inflation. Production of gold is more or less sitting at its limit, while at the same time it is a supply and demand influenced product. 

Longer-term traders and investors should place their focus on the fundementals driving gold’s price, such as the level of real interest rates. 

Most commodity trading is done through futures contracts. These contracts are agreements that you will pay or sell a specific commodity at an agreed-upon price. This way you don’t have to make room for physical gold. 

Range trading is a simple concept. All you need to do is identify the support and resistance lines in a commodity’s trade chart. Once you’ve identified these two points, all you need to do is buy when you’re close to the bottom of the range and sell when you’re close to the top.