#BreakoutTradingStrategy CFDs are complex instruments and come with a high risk of losing money

Home Market Analysis Convert fundamental and technical trading strategies into gold trading

Convert fundamental and technical trading strategies into gold trading

Discover how you can leverage fundamental and technical strategies in response to the dynamics driving the

Market of the month: Strategies for trading gold

Last week, we visualized the main potential drivers of gold in a chart focused on recent performance. Understanding the factors that can influence gold prices is essential, but translating that knowledge into effective trading strategies is where the true potential lies. 

As a CFD trader, you have the option to trade both up and down movements in gold prices, allowing you to adapt to various market conditions. Below, we show you how to leverage fundamental and technical strategies to respond to the dynamics driving gold.

Fundamental Strategies

Fundamental analysis involves examining the broader economic factors that influence gold prices, such as inflation data, interest rates, and geopolitical events. 

Sensitivity to Interest Rates

Since historically the fluctuation in gold prices has shown an inverse correlation with interest rates, you can closely monitor announcements from central banks. For example, if the Federal Reserve announces a pause or cut in interest rates, you might consider a long position in gold CFDs, anticipating that a decrease in rates could weaken the dollar and increase gold prices, and vice versa.