市場新聞與洞察

Gold has always been one of the most popular and highly traded markets for CFD traders, especially recently as its price has risen to test its all-time highs. It’s easy to see why, Gold has been a store of value throughout history, and with CFDs it’s possible to take a position in this exciting market, whether you think the price will head up or down. In this CFD gold trading Article we will look at the following: How to use CFDs to trade gold Fundamental forces that drive the price of gold Technical strategies for trading gold CFDs How to use CFDs to trade gold CFDs or Contracts For Difference allow you to speculate on the price of gold, without owning the underlying asset (No gold vaults needed!) A spot gold CFD tracks the price of the spot market being the cleanest and most efficient way to speculate on the price of gold.

They also allow you to take a position in both directions, you would enter a buy (Long) positions if you believed the price will rise, or a sell (Short) position if you believe the price will fall. With Long positions you are looking to buy and sell at a higher price at a later time to profit on the trade. With a Short position you are selling with the view to buy back at a later time to profit on the trade.

At GO Markets we offer our clients the worlds most popular gold trading platform in Metatrader 4 and 5, another advantage to these CFD trading platforms is the ability to automate gold trading strategies. Other advantages to trading gold CFDs with GO Markets: Trade 23 hours a day, unlike an ETF or gold miner listed on a stock exchange that is only open while that stock exchange is open. Leverage – the margin required to open the trade will be a fraction of the face value of the position depending on what leverage your account is set to.

Flexibility in position sizing starting from 1 ounce ($1USD per point movement in gold) unlike gold futures which have rigid contract sizes. Rolling contract, no expiries such as in options or futures to worry about. To Enter a position in Metatrader, you would bring up a deal ticket by clicking “New Order” then select your position size, any Stop Loss or Take Profit levels you want the position to automatically close at and hit Buy or Sell.

As with any instrument, make sure you are familiar with the lot sizing. 1 standard lot in gold (XAUUSD) is 100 ounces, or $100 USD a point so make sure you set the volume to a level commensurate to your account size and risk appetite. Now, the next question is how you decide on a buy or sell, lets look at the fundamentals of what drives gold and some technical analysis you can use to answer this question. Fundamental forces that drive the price of gold While no one reason can be fully attributed to movements in the price of gold, there are an important few fundamental drivers that will influence the price of gold and whose relationship has been time tested.

None of these on their own should be used as a sole reason to enter a position, but having the fundamentals on your side will certainly give you an advantage. The main fundamental drivers in my experience are (not an exhaustive list by any means!) The gold price relationship to US bond yields Safe haven flows Central Bank buying Real Yields and Gold The inverse relationship between bond yields and the price of gold is well established, especially the real yield on the US 10 year bond. The reason for this mainly is because the real yield (the real yield is calculated by subtracting inflation expectations from the actual yield of the US 10 year government bond) is seen as the “risk free” rate on an investment, the higher the “risk free” rate is, the less attractive a non-yield paying asset like gold is.

As both gold and bonds are seen as safe havens, they are competing for the same investors. See the screenshot below to illustrate this point. The gold line is the price of gold, the black line is the inverted real yield of 10 year treasuries.

This chart stretches back 16 years, but the close relationship has gone back much longer than that. This chart is showing that historically, gold is expensive at the moment as compared to real yields as can be seen by the growing gap between the two recently, this interesting decoupling has been mainly caused by our second fundamental driver – Safe haven flows. Safe Haven Flows Geopolitical strife with war in Ukraine and doubts over the health of the global economy got things started with the surge we have seen in gold prices in the last 5 months, but things went into overdrive in March 2023 when Signature bank and Credit Suisse collapsed, bring into question the integrity of the banking system and massive safe haven flows into gold which has pushed the price to within touching distance of hitting all-time highs.

With the banking crisis seemingly under control (for now maybe?) gold has lost some momentum, but the fact it is holding around these elevated prices indicates some investors may not think the crisis is over just yet. Central Bank Buying Central banks are some of the biggest buyers of gold on the open market, and 2022 saw the most central bank buying of gold on record. Whatever the reasons for this, such massive amounts of buying would be seen as a bullish sign for the gold price (if it continues) Technical strategies for trading gold CFDs While having a good understanding of the fundamentals (in my opinion) is important to help you choose the best trades most traders will use a combination of technical analysis and fundamentals with the aim for higher probability outcomes in their trades.

Some traders will use technical analysis exclusively without any interest in the fundamental drivers using things such as RSI oscillators, support and resistance areas and trend lines solely to decide on their trade direction. Which option is best is solely up to the trader, their time frames for the trades and risk appetite, all can work, and all can fail neither option can be seen as “better” than the other, it all depends on the individual trader. Technical analysis is an art in itself and there is a lot to learn on this subject, I encourage anyone interested to research the many weird and wonderful technical analysis strategies that are documented online.

But let’s take a look at a couple of popular technical indicators that gold traders use to make their trades. Support and Resistance Support and resistance are one of the most widely used and accurate (when used correctly) technical indicators that can be used by traders. Support and Resistance areas are points in the market where the price is held from going lower (Support) or going higher (Resistance), these are areas where buyers or sellers are entering the market as they see value in the asset at that price.

These levels can last a long time, or be temporary and can be used to predict turn arounds in the market, or a break of these levels could indicate a further push in that direction. Lets take a look at the recent Gold chart for examples below: From the above you can see that there are areas that Gold will find its price supported. or upside resisted as buyers and sellers battle it out. These areas are very important to keep in mind when deciding on trade direction.

Trend Channels Another simple, but effective and popular Technical Analysis tool is trend channels. These channels are a common sight on the gold chart and can give the trader some confidence in levels that will provide support or resistance, or a break of these channels can indicate a trend change. Example of trend channels on gold below: While technical analysis is useful for gold, it can be difficult to spend the time analysing all the patterns that may form, in that regard GO Markets clients have access to Trading Central which automatically detect technical set ups for our traders to add to their decision making.

Trading Central can be accessed by account holders through their Client Portal. Trading Central Pattern example below: Hopefully this article has given you an interest to learn more about trading gold with CFDs. Fell free to contact the GO Markets team if you have any questions on trading gold CFDs and opening an account with us.

Gold has been one of the most popular and highly traded markets recently as price action in the precious metal has really come alive, rate hikes, the war in Ukraine and Bank Crises have all played a part in the fundamental reasons for gold price movements in the last 12 months. Let’s take a look at the chart to see these fundamental effects and how the technical are shaping up. Firstly, the macro picture of what fundamentals have done to the price of Gold are where it’s turning points have been.

The chart below shows the decline in the Gold Price during most of 2022 as the USD rallied strongly on the back of an aggressive Federal Reserve hiking cycle, this put downward pressure on gold where we can see it bottomed and found support around the 1617 level. Next was the talk of a Fed pivot, the market starting to price in the end of the Fed hiking cycle and a subsequent bear market in the USD which lifted Gold prices. After this mov retraced in Feb/Mar we then had the collapses of Signature bank and Credit Suisse, this saw the dynamics of Gold change from following interest rates and USD strength to being a bona fide safe haven and an explosive move up to where we are now, looking to test the all-time highs set back in 2020.

Zooming in on the technical, I believe Gold is still in a strong uptrend and will continue to benefit from safe haven flows while the left-over worries of the banking crisis still remain (is it really over?) but saying that it will find tough going above 2040 USD an ounce, as we can see from the forceful rejection at that price last week, without a further catalyst to push it though, such as another leg to the bank crisis or escalation in geopolitics events. The other Key level is 1805, the last swing low which can be seen as major support. If you believe the Gold bull story the way to play the long side is to avoid getting long above 2020 until a confirmed break of this major resistance level is confirmed and legging into longs everywhere above 1805, a break of that major support level would see the bears certainly in charge.

If you’re a Gold bear, Use the major resistance at 2020-2040 to your advantage, getting short and using that area as an exit if a confirmed break to the upside occurs.

The Bank of England (BoE) is due to release its interest rate decision today, with markets expecting a 12th consecutive hike to take interest rates to 4.50%. There has been increasing speculation that the BoE is reaching its terminal rates and could follow the lead of the US FOMC and the ECB in signaling a slowdown or pause on further rate hikes following the decision today. However, inflation in the UK is yet to signal a sustained slowdown, with the recent March Consumer Price Index (CPI) still above 10%.

The UK economy has been performing better than expected this year, which has seen the GBPUSD rise steadily to trade just below the key resistance area of 1.27, which was last tested in May 2022. Any indication that the BoE could potentially pause on monetary tightening or dissent in the voting (expected 7-0-2) on the rate hike could see the GBPUSD come under renewed downward pressure. A bearish divergence (prices rallying to new highs while the oscillator retraces from a peak) has formed at the resistance level and could signal the potential for a reversal to the downside.

This reversal could be confirmed if the GBPUSD continues to trade lower past the 1.2550 price level, which coincides with the 38.2% Fibonacci retracement level from the short term. The downside on the GBPUSD could be significant, with the next key support level at 1.2350 which aligns with the 38.2% Fibonacci retracement level from the longer term.

In the most recent meeting, the US Federal Reserve hiked rates by 25 basis points, as anticipated, to take interest rates in the US to 5.25%, slightly beyond the terminal rate of 5.1%. However, the US Dollar Index (DXY) fell to the key support level of 100.80 which was last reached in April and February 2023, following the release of the rate hike decision. The DXY trading lower was driven primarily due to comments from Chair Powell where he indicated that the Federal Reserve was “closer to the end than the beginning” and that it “felt like they are close, or even there”.

This signaled to the market that the Federal Reserve could pause on future rate hikes, leading to the weakness seen on the DXY. In the lead-up to the Federal Reserve rate decision, the upside on the DXY was limited by the round number resistance area of 102 and the 200-period moving average (200 MA). With the DXY approaching the key support level of 100.80 and the relative strength index (RSI) heading down toward the oversold region, watch out for the development of price action along the support level.

If the DXY continues to trade lower the next key support level is at 100 which was last tested in April 2022.

Following the lead of the US Federal Reserve, the European Central Bank (ECB) announced its decision to hike rates by 25 basis points, taking interest rates in the Eurozone to 3.75% overnight. In the lead-up to the ECB meeting, there was some market speculation for a potential 50bps hike, which saw the EUR/USD trade to a 12-month high, reaching the 1.1095 price area. During the press conference, President Lagarde highlighted that the ECB was not pausing on future rate hikes, but she indicated some “uncertainty in policy transmission” and that it was “sensible to return to more standard increment”.

This led to the EUR/USD reversing strongly to trade lower and retest the 1.10 round number support level. As the EUR/USD continues to fluctuate between the 1.10 and 1.11 price level, further upside potential could be limited, with the key resistance level at the 1.12 price area. If the DXY recovers in strength, look for significant correction to the downside on the EUR/USD with the next key support level at 1.08.

However, confirmation for the downward move would be signaled only if the price breaks below the crucial level of 1.095 which is a confluence of levels with the 23.60% Fibonacci retracement, short-term upward trendline, and the 200 moving average.

Crude Oil has always been one of the most popular and highly traded markets for CFD traders whether it is WTI or Brent, especially recently as geopolitical and economic forces have seen its price fluctuate from extreme lows to extreme highs. It’s easy to see why, Oil is a bellwether for the health of the global market, oil greases the wheels of global commerce and with CFDs it’s possible to take a position in this exciting market, whether you think the price will head up or down. In this CFD Oil trading Article we will look at the following: How to use CFDs to trade oil Fundamental forces that drive the price of oil Popular technical strategies for trading oil CFDs How to use CFDs to trade oil CFDs or Contracts For Difference allow you to speculate on the price of oil, without owning the underlying asset.

A spot oil CFD tracks the price of the spot market being the cleanest and most efficient way to speculate on the price of oil. They also allow you to take a position in both directions, you would enter a buy (Long) positions if you believed the price will rise, or a sell (Short) position if you believe the price will fall. With Long positions you are looking to buy and sell at a higher price at a later time to profit on the trade.

With a Short position you are selling with the view to buy back at a later time to profit on the trade. At GO Markets we offer our clients the worlds most popular oil trading platform in Metatrader 4 and 5, another advantage to these CFD trading platforms is the ability to automate oil trading strategies. Other advantages to trading oil CFDs with GO Markets: Trade 23 hours a day on WTI oil, 21 hours a day on Brent oil, unlike an ETF or oil company listed on a stock exchange that is only open while that stock exchange is open.

Leverage – the margin required to open the trade will be a fraction of the face value of the position depending on what leverage you are comfortable with. Flexibility in position sizing starting from 0.1 lot ($0.10 USD per point movement in oil) unlike oil futures which have rigid contract sizes. Rolling contract, no expiries such as in options or futures to worry about.

To Enter a position in Metatrader, you would bring up a deal ticket by clicking “New Order” then select your position size, any Stop Loss or Take Profit levels you want the position to automatically close at and hit Buy or Sell. As with any instrument, make sure you are familiar with the lot sizing. 1 standard lot in oil (USOUSD and UKOUSD) is 100 barrels, or $1 USD a point so make sure you set the volume to a level commensurate to your account size and risk appetite. Now, the next question is how you decide on a buy or sell, let’s look at the fundamentals of what drives oil and some technical analysis you can use to answer this question.

Fundamental forces that drive the price of oil Both WTI oil (USOUSD) and Brent Oil (UKOUSD) are highly correlated and will both be referenced as “oil” in the below. While no one reason can be fully attributed to movements in the price of oil, there are an important few fundamental drivers that will influence the price and whose relationship has been time tested. None of these on their own should be used as a sole reason to enter a position, but having the fundamentals on your side will certainly give you an advantage.

The main fundamental drivers in my experience are The perceived health of the global economy OPEC+ production cuts or increases Geopolitical issues The perceived health of the global economy Oil is the driver of commerce, it is needed for the transport and manufacturing of goods and getting people around. If economic conditions are deteriorating, it means less economic activity and the need for less oil sending the price down. A global economy which is seen as “hot” means more economic activity and more demand for oil, seeing it’s price increase.

A clear chart to see this is the price of oil as compared to the US 10-year bond yield over the years. You can see the price of oil and the yield are highly correlated, this is due to yields going up when the economy is “hot” and yields falling when the economy enters a period of contraction, similar price drivers to oil. The black line is WTI oil price, the orange US 10-year yields going back 10 years.

Source: tradingview.com OPEC+ production cuts or increases The Organization of the Petroleum Exporting Countries (OPEC) is a cartel of leading oil-producing countries formed in order to collectively influence the global oil market. OPEC started with a handful of Middle Eastern oil producers in 1960, and has since grown to 24 members in OPEC+. Even thought the USA is currently the worlds top oil producer, OPEC+ countries as a whole still dominate global oil supply and decisions made by the cartel can have a dramatic influence on the price of crude oil.

Market share of oil producing nations: Source: gisreportsonline.com OPEC+ hold regular meetings during the year, normally the expected result is well telegraphed, but sometimes there can be a surprise, such as at their latest meeting on Sunday April 2 nd, 2023, where a surprise production cut was announced, seeing the price of oil gap significantly higher on Mondays open, showing oil traders to always approach these meetings with caution. Geopolitical issues The last three years has seen some very influential geopolitical events, or “black swans” and oil being closely tied to the health of the global economy has seen some very big moves on the back of these events. The Pandemic and its related lock downs and slowing of global commerce saw the price of oil slump to all time lows, followed by the war in Ukraine which saw oil jump to multi year highs on the fear of supply disruptions (Russia is the second biggest oil producer in the world) The chart below illustrates this: Oil traders especially need to be aware of geopolitical risks as the above chart shows.

Technical strategies for trading oil CFDs While having a good understanding of the fundamentals (in my opinion) is important to help you choose the best trades most traders will use a combination of technical analysis and fundamentals with the aim for higher probability outcomes in their trades. Some traders will use technical analysis exclusively without any interest in the fundamental drivers using things such as RSI oscillators, support and resistance areas and trend lines solely to decide on their trade direction. Which option is best is solely up to the trader, their time frames for the trades and risk appetite, all can work, and all can fail neither option can be seen as “better” than the other, it all depends on the individual trader.

Technical analysis is an art in itself and there is a lot to learn on this subject, I encourage anyone interested to research the many weird and wonderful technical analysis strategies that are documented online. But let’s take a look at a popular technical indicators that oil traders use to make their trades. Support and Resistance Support and resistance are one of the most widely used and accurate (when used correctly) technical indicators that can be used by traders.

Support and Resistance areas are points in the market where the price is held from going lower (Support) or going higher (Resistance), these are areas where buyers or sellers are entering the market as they see value in the asset at that price. These levels can last a long time or be temporary and can be used to predict turn arounds in the market, or a break of these levels could indicate a further push in that direction. Oil is also particularly sensitive to psychological levels around “big figures” or rounded number, e.g. 79.00 and 74.00 As can be seen on the chart below.

Hopefully this article has given you an interest to learn more about trading oil with CFDs. Feel free to contact the GO Markets team if you have any questions on trading oil CFDs and opening an account with us.