Historically, gold has always been considered a safe haven asset especially during economic uncertainty. While gold can still be traded, it does require a different approach. At Moneyplantfx, our goal is to inform the trader in a manner that is not just limited to the basics. Gold does not trade like a currency pair or commodity, instead it reacts to a unique set of global events. Therefore, you will need specialized strategies to be able to trade gold efficiently.
Many things can affect gold, but in particular, geopolitical happenings, world disasters, financial crises and enormous political shifts have an implicit role in affecting gold. This can also be attributed to gold’s interrelation with equity markets, currencies and commodities. Although it would be a good strategy to trade, you should remember that news trading is not for the impatient or poor execution trader.
Don’t open a trade straight away after the news or major event. The price of gold often fluctuates wildly after the news is released. Wait for confirmation and the intended price movement to occur before placing a trade in gold.
Example:
If the stock market was to crash or there were major losses on the stock market, you would expect the price of gold to spike as risk averse investors sought safe haven, in this scenario, it may be reasonable to go long (buy gold).
At Moneyplantfx, we have taught our traders how to trade gold based on correlations. There are two main relationships that dominate gold’s price behavior:
a) Negative Correlation with the US Dollar (USD)
Gold and the USD typically move in opposite directions. When the dollar weakens, gold typically rises, and vice versa—when the dollar strengthens, the gold price typically falls.
Strategy:
If USDJPY breaks a resistance level and moves more bullishly, it is typically a short signal for gold.
If USDJPY makes a bearish candle, it is usually a buy signal for gold.
b) Positive Correlation with AUDUSD
Australia is a major gold-producing country and, therefore, the gold price and AUDUSD currency pair have a positive correlation. Gold typically responds to Australian economic news, or decisions made by the RBA (Reserve Bank of Australia).
Although the price movement of gold is largely random, the price action actually has a seasonal cycle to it. We at Moneyplantfx have researched these cycles to assist traders in determining when price tends to head in a certain direction.
4. Optimal Trading Time for Gold
Gold is a global asset class, and there are significant periods when the market has the most liquidity. At Moneyplantfx, we encourage traders to trade on the gold fixings, which are set around 10:30 GMT, and 15:00 GMT.
The fixings are decided during auctions by the biggest players and reflect spot price movements. As most institutions are placing trades at this time, this is the best time to trade Gold.
Trading gold is different from any other asset. Gold is affected by so many more variables – macroeconomic, geopolitical and even seasonal! At Moneyplantfx we prepare our traders to:
✅ Analyze correlations (such as USD & AUD cross pairs)
✅ Use seasonal influences to identify potential entry and exit points
✅ Trade gold during key time periods (during global gold auctions)
✅ Use fundamentals and technical metrics as guides for entry and exit points when trading gold
Gold is a unique and powerful asset in your trading tool kit – but only if you trade it with a plan and knowledge. No matter the level of experience, Moneyplantfx provides the resources and education to help you confidently make informed and profitable trading decisions in the gold market.
Embark on your journey in gold trading with Moneyplantfx—where strategy and opportunity converge