Trade Gold Trading

When Not to Trade Gold

Avoid gold trades during low-liquidity periods. The market turns unpredictable with fewer participants. Skip these times.

  • News Time

Scheduled economic information reports are released/announced throughout many times of the month. These can be found, in advance on a Gold Calendar

News is categorized into three types: yellow, orange, and red, with each category indicating a varying level of impact. High-impact economic news can significantly influence prices, leading to sharp fluctuations in both directions before settling in one. These periods are high-risk moments where many may experience being stopped out.

News releases move markets. But expectations of those numbers can shift prices early. Skip trading during news times for safety.

Major economic news events like Non-Farm Payrolls (NFP) and interest rate decisions often cause extreme market volatility. These rapid movements can be challenging to trade and shift markets dramatically within seconds.

Economic data can cause a lot of speculation and thenceforth a lot of price movement.

  • Weekends

A lot can happen over the weekend leading to the market opening with a large gap. This can cause a large difference in your account.

  • Market closing times- NY closing

At the close time a number of trade positions are being closed or being swapped. This will lead to volatility in the prices and can cause the price to move erratically.

  • Asia Market

Trading volumes are very low during the Asian trading hours, and the market fluctuates within a small range, making it hard to trade because prices do not move much. Unless you trade JPY and AUD, it is better not to trade at this time.

  • Holidays

Avoid trading or conducting transactions during holidays. This is due to the closure of banks, which results in fewer market participants. When banks are on holiday, the number of trade transactions dramatically decreases, leading to lower market volatility.

a Traders should avoid trading on holidays such Christmas and New Year's, and instead take a break during this week of Christmas through New Year's Day, February 2, when banks resume business. A Financial Economic Calendar is an example of an Economic Calendar, which lists the bank holidays and allows traders to stay current.

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