Forex Quotes for Precious Metals

In trading on commodities, Forex Quotes for Precious Metals are crucial.

Gold, and after it silver, as a rule, is getting more expensive in case of uncertainty on financial markets, or any collisions associated with the geopolitical situation, changes in the monetary policy of leading countries, as well as global macroeconomic shocks. Therefore, every self-respecting Forex trader should at least keep track of Quotes of Precious Metals in order to determine the general market sentiment.

Types of Precious Metals Quotes

Precious metals include Gold, Silver, Platinum, and Palladium. The most common quotations of precious metals are:
  • Gold value in US dollars - XAU / USD;
  • Gold value in EUR - XAU / EUR;
  • The cost of silver in US dollars is XAG / USD;
  • The cost of silver in EUR - XAG / EUR;
  • The cost of platinum in US dollars - XPT / USD;
  • The cost of palladium in US dollars is XPD / USD.

What do the Quotes of Precious Metals show?

As a rule, several price parameters presented in the quotation table, which makes it possible at a glance to determine the dynamics of the development of trading conditions on the market on a given day. Below is a list of the most significant of them:
  • The opening price of the day. Determines the price at which the market opened at 00:00 GMT. May differ from the closing price of the previous trading day (session). Traders call such a case gap (or gap). It occurs if in the interval between trading sessions there were events that significantly affected the supply-demand ratio.
  • The maximum price for the current day. Shows the peak of the market, or the highest quote registered during the auction.
  • The minimum price for the current day. Indicates the bottom of the market, or the lowest quotation recorded during trading.
  • Current price. Market quotations, which may change every second depending on the level of trading volatility.
  • Change per day. Shows the price shift in points and percent. This value will be positive if the price has risen and negative if the price has fallen. The percentage of price changes may indicate the volatility and significance of market events that occurred during the trading session. The change in price also shows whether the latest market movement is in line with a long-term trend.

The last parameter is the most important indicator for determining the trend and clarifying market conditions on a given day. The percentage change in price indicates the level of market volatility. Traders talk about relatively calm trading conditions if the change in the quotation of gold in US dollars does not exceed the range of 0.2 - 0.5%. In the case of a change in the value of gold by 0.5 - 1.0%, we should talk about average volatility, while a shift of 1.0 - 2.0% indicates significant market unrest.

Conclusion

Quotes of Precious Metals allow Forex traders to not only quickly find out the cost of commodities, but also to determine current market conditions and volatility. Changes in precious metals quotes may also indicate an appetite for risk on the part of international investors.