Forex gold and gold futures traded higher Tuesday on the expectation of a major US and European recession.
Gold futures for US futures jumped nearly $1.60 per ounce in US dollars, while gold for gold for EU futures rose about $0.90 per ounce.
Forex Gold Forex Gold futures for Asian markets rose as much as 3 per cent in US and Europe to $1,965.55 an ounce, as traders looked to offset the impact of a US economic recession.
Asian stocks fell, and gold and silver prices fell on worries of a global recession.
Forex Trading Meaning Forex trading, meaning gold trading or futures trading, refers to a way to trade gold, silver or any other asset on a futures market.
In trading, gold and other assets are traded on a specific day, often to help investors and traders adjust to new economic conditions, often a drop in prices.
Forex traders are required to follow a strict set of rules and procedures.
As well, as well as gold, gold prices are set in gold bars that are placed on a central bank’s gold market for trade.
The move to futures was driven by traders seeking to offset a sharp decline in the US dollar.
The US dollar index, which tracks the US benchmark, fell to a seven-week low of 80.77 US cents, its lowest level in more than a decade.
The decline in gold prices is one of the reasons gold has been trading above $1 an ounce in recent weeks.
The rally is partly a result of the US Federal Reserve’s decision to lift interest rates in September, which have helped push gold prices higher.
But the Fed has also boosted the value of gold, so traders have had to make a bigger contribution to the gold price.
The gold market has been particularly resilient this year, and traders have been encouraged by Fed policies.
The gold market is up more than 11 per cent this year compared with a year ago.
Gold futures on Tuesday traded around $1 per ounce, or 1.45 per cent higher than the previous day’s close.
Chinese and US financial markets have been particularly buoyed by Fed easing measures, which could be seen as a signal that the global economy is finally beginning to recover.
China and the US are the world’s two biggest producers of gold.
The Chinese government said it was also boosting its demand for the metal.
On Tuesday, China’s central bank lifted its benchmark interest rate to an unprecedented 6.5 per cent, up from the previous record of 5.25 per cent.