Historically, gold in Thailand has been considered the main store of value, a hedge against inflation, and a hending tool during social and political crises, and its role is recognized worldwide due to its exceptional liquidity. You can trade xau usd on trusted sites and increase your income by withdrawing capital from risky assets and keeping it in precious metals.
What is xau usd?
Gold is a popular investment asset. Forex broker buy it not only for the manufacture of jewelry and for other similar purposes, such as buying oil and receiving gasoline, diesel, and aviation kerosene. Gold is invested to save assets from inflation or to earn on the growth of the exchange rate. That is, it is bought and sold mainly as an asset, not a commodity. Accordingly, the price is formed not due to the demand of producers, but due to the activity of traders and investors.
Reference gold bars, which are traded on the exchange, are obtained by pouring molten metal into molds, followed by solidification. In the Forex market, two types of gold designations are common in broker terminals – Gold or a more correct name – XAUUSD. A troy ounce of gold has the international designation XAU. The code XAUUSD on stock charts means the cost of 1 troy ounce in US dollars.
Strategies for trading gold in Thailand
Gold trading is traditionally based on a combination of technical and fundamental analysis. Together, they cover the main factors influencing quotes, allowing you to find the best moments to buy or sell the metal. Here are some strategies you can use:
- Trading on Fibonacci levels. This strategy uses the Fibonacci levels technical indicator. It is suitable for assets with high liquidity and large volumes, which characterizes gold. Fibonacci levels are support/resistance levels. Trading opportunities arise, for example, on a pullback or a continuation of a trend.
- Macroeconomic news. For gold trading, it does not hurt to get a basic understanding of the political and economic sphere in Thailand. To facilitate the task, traders are provided with an economic calendar, which indicates the time of the release of important economic news.
Work with gold is based on the well-known rules of market trading. However, this asset has a number of features that you need to consider when deciding whether to trade XAUUSD. We are talking, in particular, about the size of the deposit, which should be very significant. In all other respects, normal trading practices should be followed.