When Not to Trade XAUUSD Metal

There are times when you should avoid trading Gold because the online XAUUSD Gold market isn't very active and becomes hard to predict. This means fewer traders are active compared to normal. Here are times to avoid trading Gold:

News Time

Scheduled economic reports are announced throughout many times of the month. This schedule of economic data reports can be obtained by a trader in advance from an Economic News Calendar

There are 3 types of economic news: yellow, orange, and red, and each type changes the price of gold differently. Big economic news can really change the prices of XAUUSD, sometimes making the price quickly go up and down before settling and moving in one direction. These times are risky, causing many people to lose money, so it's best to avoid trading then.

However, it is not just the economic report announcements themselves that can affect the prices. The sentiments & predictions/forecasts of what the numbers and figures will be can cause the XAUUSD Gold prices to move in anticipation of this news data. It is hence not a good idea to trade during the economic/fundamental news data reports time.

How Do You Trade News - News Trading Strategy Training TutorialSome major economic/fundamental news like the NFP and Interest Rates decision can cause extreme volatility which is extremely hard to trade and can cause extreme movements in XAUUSD metal markets within seconds.

Economic data can lead to significant speculation and thus considerable price fluctuations.

Weekends

Significant market developments can occur over the weekend, often resulting in the price opening with a substantial gap. This disparity can lead to considerable fluctuation in your trading account equity. Therefore, it's consistently recommended to finalize all open positions before the weekend commences and avoid holding them open across this period.

Market Close Times - NY closing

Near the conclusion of the New York trading session, numerous open positions are finalized or exchanged. This activity often induces price fluctuations across financial instruments, potentially causing erratic price behavior.

Asian Market

During the Asian session, trading volumes are very low, and the market usually moves sideways between 20 to 30 pips, making it hard to trade because prices stay flat. It's better not to trade at this time.

Holidays

Do not trade XAUUSD during Holidays. This is because the Banks are closed & thenceforth less market participants in the financial trading markets. If banks close for holiday then the volume of trade transactions carried out is greatly reduced. This can lead to low volatility.

Gold traders should not trade on holidays like Christmas and New Year and should take time off during the week of Christmas until New Year, around January 2, when banks open again. A calendar for economic data will show bank holidays, and XAUUSD traders can stay informed.

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