Inside Trade | Metals

Currencies are not the only instrument traded in Forex. Precious metals which serve its value as a reliable investment instrument and a very good industrial commodity is also being transacted. Gone are the days wherein the the gold determines the value of the commodity. But it doesn't mean that it ended there.

Metal are ranked and traded in troy ounces. The first one on the list is the gold followed by the silver, platinum, and many other more. The metal operations are conducted in various ways. It may be spot, swap, and forward deals.

Metals are mostly used as an instrument for speculations, for hedging purposes, and risk diversification.

Metal trading is also similar to forex. It is available round-the-clock and dictated by the demand and supply in the market. Its similarity to Forex is even visible in the way that it is traded. Moreover, the fundamental and technical analysis also applies to it. Macroeconomic indicators that defines the economic and political atmosphere dictates the price of metals. Technical Indicators are also applicable in speculating the price movements of metals.

The gold, which ranked first, served as safe haven whenever the greenback has a negative outlook. Silver, who took the next spot, has a lesser value but has faster growth rate compared to the former.