Trading Gold in the UK

Some people choose to own physical gold as an investment, calculating that it will be valuable even when other asset classes are falling. Others prefer to trade gold, taking advantage of daily and weekly price fluctuations. Buying low and selling high can bring profits but it’s important to understand that there is also the potential for loss, particularly when trading leveraged products like CFDs or spread betting.

Trading Gold in the UK: A Complete Investor’s Guide

Trading Gold in the UK is a very popular trading commodity. As well as speculating on its spot price, many traders choose to invest in it via ETFs and shares in companies that mine the precious metal. Traders can also access the market through futures contracts and options. This is where you agree with another investor to buy the market at a certain time in the future for a price that’s currently higher than the current price (called going long). Sellers, on the other hand, hope that the market will be lower at the agreed date and sell for a profit.

The gold market is largely characterised by strong liquidity. It is a global market and its price movements are heavily influenced by sentiment, significant institutional activity including central banks and the fact that the asset is regarded as a safe haven in times of economic and political uncertainty. However, trading the asset can be risky and it’s important to manage your exposure with stops, stop losses and limit orders. We advise that you research the gold market thoroughly, including fundamental and technical analysis.