Do You Trade XAUUSD (Spot Gold)? | Metals Mine

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Do You Trade XAUUSD (Spot Gold)?

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  • Do You Trade XAUUSD (Spot Gold)?
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  • #1
  • First Post: Dec 11, 2006 1:32pm Dec 11, 2006 1:32pm
I personally don't, but it seems there are some opportunities out there. What about you?

  1. Do you trade spot gold? Do you plan to do so in the future?
  2. Does your forex broker give you the opportunity to do trade spot gold?
  3. Is the spot gold market liquid enough?
  4. Do you trade other currencies against gold? (Does such an opportunity exist in first place? for example XAUEUR or XAUGBP perhaps)

Thanks for your participation in advance.<!-- / message --><!-- sig -->

  • #2
  • Dec 11, 2006 1:49pm Dec 11, 2006 1:49pm
I trade gold futures - CBOT mini. Tight spreads, plenty of liquidity and via a regulated exchange so no dodgy prices. I can't see any benefit to trading spot gold unless you don't have the capital to open a futures account.
  • #3
  • Dec 11, 2006 2:15pm Dec 11, 2006 2:15pm
Quoting notouch
I trade gold futures - CBOT mini. Tight spreads, plenty of liquidity and via a regulated exchange so no dodgy prices. I can't see any benefit to trading spot gold unless you don't have the capital to open a futures account.
How much do you pay for commission and/or spread per contract?
  • #4
  • Dec 11, 2006 2:23pm Dec 11, 2006 2:23pm
i can trade gold against YEN, hongkongdollar, USD and euro

revoke
  • #5
  • Dec 11, 2006 2:25pm Dec 11, 2006 2:25pm
Commission is $2.06 per contract. Spreads varies - can get very low during the most liquid times.
  • #6
  • Dec 11, 2006 2:37pm Dec 11, 2006 2:37pm
I trade xauusd on Oanda. Spread is usually 50 pips during normal hours which is a decent spread. Volatility and volume is certainly there. I typically always short it though. Moves down are usually always faster than the moves up, plus if you end up holding on to it for a few days, you get interest on short positions.


GF
  • #7
  • Dec 11, 2006 3:07pm Dec 11, 2006 3:07pm
  •  iya
  • | Joined Oct 2006 | Status: always protect yourself | 129 Posts
I can trade gold and gold futures with alpari. 100 pip spread (10 ticks).
One question though, does 'XAU' really mean 'gold'?
From http://www.kitco.com/ :The XAU is an index traded on the Philadelphia exchange. It consists of 12 precious metal mining companies.
  • #8
  • Dec 11, 2006 3:12pm Dec 11, 2006 3:12pm
Quoting revoke
i can trade gold against YEN, hongkongdollar, USD and euro

revoke
Do you or broker trade these through an exchange or OTC?
  • #9
  • Dec 11, 2006 3:13pm Dec 11, 2006 3:13pm
Quoting notouch
Commission is $2.06 per contract. Spreads varies - can get very low during the most liquid times.
Thanks
  • #10
  • Dec 11, 2006 3:14pm Dec 11, 2006 3:14pm
Quoting GirlFlyer
I trade xauusd on Oanda. Spread is usually 50 pips during normal hours which is a decent spread. Volatility and volume is certainly there. I typically always short it though. Moves down are usually always faster than the moves up, plus if you end up holding on to it for a few days, you get interest on short positions.


GF
50 pips is a very good spread for gold. How often they increase it?
  • #11
  • Dec 11, 2006 3:16pm Dec 11, 2006 3:16pm
Quoting iya
I can trade gold and gold futures with alpari. 100 pip spread (10 ticks).
One question though, does 'XAU' really mean 'gold'?
From http://www.kitco.com/ :The XAU is an index traded on the Philadelphia exchange. It consists of 12 precious metal mining companies.
Thanks for your feedback. Check the following link about XAU:
http://www.answers.com/XAU
  • #12
  • Dec 11, 2006 3:34pm Dec 11, 2006 3:34pm
Technically it's not pips with gold I don't think. CBOT futures are sometimes more than 10 ticks (1 dollar) but usually less than 5 ticks (50 cents).
  • #13
  • Dec 11, 2006 3:37pm Dec 11, 2006 3:37pm
i am not sure but im pretty sure its via and exchange i will ask them


revoke
  • #14
  • Dec 11, 2006 3:38pm Dec 11, 2006 3:38pm
my spread on xauusd is 80

revoke
  • #15
  • Dec 11, 2006 5:01pm Dec 11, 2006 5:01pm
Quoting aparsai
50 pips is a very good spread for gold. How often they increase it?
Spread goes to 100 during usually during Asian session at nights. But I usually only trade it during NY hours because NY controls the gold.
  • #16
  • Dec 11, 2006 5:42pm Dec 11, 2006 5:42pm
question for gold traders:

Can a intraday trading strategy with the spot aud/usd be developed with using a intraday futures gold chart as a leading indicator?

Let me explain what I am getting at! In trading equiities- watching the "noodles" (nasdaq mini) acts as a leading indicator for trading basket stocks intraday with 5min-15min-60min charts. Basically wait for the nasdaq to start trending or breaking out and the tech stocks will usually have a lag reaction. I do not want to get into a discussion on trading stocks though.

A couple of times a week I like to look at a free daily chart of gold and make sure it is trending if I am long Aud/Usd. I have been told that a strong rally in gold usually forecasts a strong rally for Aud/Usd.

I do not have access to a non time delayed intraday gold chart to compare intraday breakouts to intraday breakouts in the Aud/Usd.

So the next best thing is to ask a nice trader that trades both these instruments if he or she happens to notice any tradeable intraday correlations or leading/lagging between gold and Aud/Usd etc..

Also does any other instrument(Commodity/futures) act as a intraday leading indicator for any spot currency pairing??

Any info is appreciated!

TY- MRippy
  • #17
  • Dec 11, 2006 5:51pm Dec 11, 2006 5:51pm
OandA gold spread is consistently 50 wide during the U.S. session which is equivalent to 5 pips in the Forex world.

I think it's a fun pair to trade intra day. It is capable of strong moves during the U.S. session.
Profit is where readiness meets Opportunity
  • #18
  • Dec 11, 2006 5:53pm Dec 11, 2006 5:53pm
Gold moves just like any other pair... it's all ruled by fear, uncertainty, and doubt... probably moreso since it's often used to hedge...

I trade it about 3-4 times a week... which is about the amount of time I get a setup...

50 spread is norm. As another person said, the US session controls the movement. Other than that, you get some moves here and there during London... Asia, as with most pairs, is slow and boring. I wouldn't even consider putting on a position with gold unless it's at least 30 minutes before London, all the way into US...
Mr. Trend
  • #19
  • Dec 11, 2006 6:51pm Dec 11, 2006 6:51pm
PipRippy I doubt you can make that strategy work unless you had an automated arbitrage system. The two tend to move simultaneously due to arbitrage.
  • #20
  • Dec 12, 2006 8:31am Dec 12, 2006 8:31am
Thanks to everybody for your feedback.
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