Gold

Written by Mike Druttman

Reviewed by Nadav Zelver

Intro

Gold has long been a coveted asset in the trading world. Historically, trading in gold meant dealing directly with physical forms like minted coins, bars, or jewelry. But now, advancements in technology have revolutionized this process. It's similar to trading stocks; you can buy and sell without ever handling the metal. eToro's platform has made gold trading accessible and efficient. For a comprehensive guide, including some personal insights I've gained through experience, keep reading.

Trading Gold via CFD

On eToro, when you trade gold, you're engaging in CFD (Contract for Difference) trading. This means you're not actually buying physical gold. Instead, you're speculating on its market price movements. I find CFD trading appealing because it allows for speculative trading without the need to physically own the commodity. Crypto CFDs/ Leverage trading is restricted for users under FCA.  

After Hours Trading

Do take note that this commodity is not available for trading all day so you need to know what are the trading hours for gold on eToro. And if in case the market is closed, you have the option to place your orders in advance. This is what is known as "after hours" trading. You're basically placing an investment in advance and this will be executed once the markets open.

Why I Prefer Trading Gold on eToro

Having traded this commodity on the platform multiple times, I've identified several key advantages:

• User-friendly interface: eToro's platform is intuitive and easy to navigate.
• Flexible trading schedule: Trade gold on your own terms and timetable.
• Leverage options: eToro offers leverage, allowing for larger trade positions with smaller capital commitments.

The Gold Asset Page

When you visit the Gold asset page, the Overview section greets you by default. Here, several key elements are presented:

• Graph: Displays the performance of the gold asset.
• About: Offers brief information about this particular commodity.
• Latest News: Provides up-to-date news about the precious metal, sourced from CityFALCON.
• People Also Bought: Shows other popular eToro commodities that traders are investing in.
• Copy Investors: Lists top-performing gold traders. You can easily copy their trades by clicking the "Copy" button, leading you directly to the copy trading window.
• Discussions: Features posts and conversations from traders interested in this asset. You can filter to see top discussions or all discussions, and interact by liking, commenting, or sharing.

Tools for Trading

The platform offers several integrated tools that enhance the trading experience:

• Chart: Provides a live chart for this metal, configurable from 1 minute to 1 week intervals.
• News: Keeps you updated with the latest gold news, also powered by CityFALCON. It includes a sentiment indicator showing whether the news mood is positive, negative, or neutral. The Sentiment Trends section quantifies news sentiment over a 30-day period, displaying average sentiment and top stories for each day.

The Process of Trading Gold

So how do I trade gold on eToro? Via the platform (app or website), search for the asset, select "BUY" or "SELL," enter your investment amount, set your trade preferences, and execute the trade. That's how simple it is.

End of the Line

This guide covers the essentials for trading gold with this broker, whether through the web platform or mobile app. Remember to apply these tips wisely in your eToro trading journey.