Precious metals trading refers to the buying and selling of valuable metals such as gold, silver, platinum, etc. These metals are favored by investors due to their rarity, stability in value, and industrial applications. Below are some key points of precious metals trading.

 

Overview of Precious Metals Trading Market

• Trading Instruments:
  • Gold: As the most popular and widely traded precious metal, gold is valued for its safe-haven and investment properties.
  • Silver: Besides being an investment asset, silver is extensively used in industries and jewelry manufacturing.
  • Platinum: A rare metal, commonly used in jewelry and automotive catalytic converters.
  • Palladium: Primarily utilized in the automotive industry and electronic products, it has gained attention in recent years due to supply-demand dynamics.

 

• Factors Influencing Prices:
  • Global Economic Conditions: Economic growth, inflation, monetary policies, fiscal policies, etc., all impact precious metal prices.
  • Geopolitical Risks: Political instability and conflicts may drive up the prices of precious metals as safe-haven assets.
  • Supply-Demand Dynamics: Shortages in supply or increased demand can lead to price increases.
  • Market Sentiment: Investor sentiment, market expectations, etc., also influence precious metal prices.

 

• Trading Markets:
  • International Markets: London Bullion Market, New York Commodity Exchange (COMEX), etc.
  • Domestic Markets: Shanghai Gold Exchange, Shanghai Futures Exchange, etc.

 

Details of Precious Metals Trading:

● Trading Methods:

Physical Trading: Purchasing physical precious metals such as gold bars, gold coins, etc.

Derivatives Trading: This includes options, contracts for difference (CFDs), etc., where investors speculate on the price movements of precious metals without physically owning them.

Spot Trading: Immediate buying and selling of precious metals, typically settled in cash, with both parties directly exchanging physical commodities.

Futures Trading: Trading precious metal futures contracts on exchanges, where buyers and sellers agree to deliver or take delivery of metals at a specified price in the future, often involving higher leverage.

ETF Trading: Trading exchange-traded funds (ETFs) on exchanges as a means of investing in precious metals, with investors buying shares of funds pegged to the prices of precious metals.

 

● Trading Time：

Exchange/Market	Trading Hours (Local Time)	Remarks
London Bullion Market (LME)	Monday to Friday 8:00 - 17:00 (GMT)	One of the world's largest gold trading markets, trading gold derivatives
New York Commodity Exchange (COMEX)	Monday to Friday 8:00 - 13:30 (EST)	Major futures exchange in the United States, trading gold futures contracts
Shanghai Gold Exchange (SGE)	Monday to Friday 9:00 - 11:30, 13:30 - 15:30 (CST)	Primary precious metals exchange in China, primarily trading physical gold
Online Trading Platforms	24-hour trading (some platforms)	Offers round-the-clock trading services, but market liquidity may be lower outside trading hours

The above-mentioned times are in local time for each respective exchange and may be subject to adjustments due to special circumstances or holidays. Additionally, due to time zone differences, trading hours for different exchanges may overlap, providing more trading opportunities for global investors.

 

● Trading Costs:

Transaction Fees: Including brokerage commissions, trading fees, storage, and insurance costs, among others.

Premium: Purchasing physical precious metals may require paying a premium above the spot price.

 

● Major Rules of Precious Metals Trading:

● Key Points of Precious Metals Trading:

• Active Trading Periods:
  • The active trading periods in the precious metals market mainly concentrate in the afternoon to the evening, particularly from 3:00 PM to 5:00 PM and from 7:00 PM to 12:00 AM.

• Avoiding Overnight Positions:
  • To mitigate potential risks, it is advisable for investors to avoid holding positions overnight.
  • If holding positions overnight is necessary, it is imperative to set clear stop-loss and take-profit prices.

• Stop-loss, Take-profit, and Trading Strategies:
  • When setting stop-loss and take-profit prices, indicators like daily moving averages can be referenced to formulate sound trading strategies.
  • Decisions should not solely rely on intuition; investors should pay attention to international news events and analyze market dynamics rationally.

• Capital Management:
  • Investors should refrain from overcommitting and avoid full-margin operations to reduce investment risks.
  • Proper allocation of funds should be ensured to safeguard investments.

• Market Trends and Swing Trading:
  • Following market trends closely to determine the major trend; caution should be exercised in swing trading to avoid losing big due to small gains.
  • Pay attention to market anomalies, such as situations where the market refuses to rise or fall, and adjust trading strategies promptly.

• T+0 Trading Mechanism:
  • Precious metals trading adopts the T+0 trading mechanism, providing flexible buying and selling opportunities.
  • Investors should fully utilize this mechanism to seize market opportunities and make decisive trading decisions.

 

Risk Management:

• Stop-loss and take-profit: Setting price levels to limit losses or ensure profits.
• Diversification of investments: Combining precious metal investments with other asset classes to diversify risks.
• Market analysis: Predicting price trends through technical and fundamental analysis.
• Compliance with regulations: Traders should ensure that trading platforms and brokers comply with local laws and regulations to protect their own interests.

Understanding these basic key points of precious metals trading helps investors make wiser investment decisions and effectively manage risks. Prior to entering the market, thorough research and preparation are recommended.

 

Why choose the uSMART platform?

With the upgrade of CFD trading, you can trade spot gold and silver on uSMART SG and enjoy the following features:

1. Support for both long and short transactions: You can choose to buy or sell based on market trends, and orders can be held for a long time. For gold short orders, you can earn overnight interest, but for long orders, you will need to pay overnight interest.
2. Up to 5x leverage: We provide leverage up to 5x to help you maximize the efficiency of your funds.
3. Minimal spreads: Our spreads are very small, ensuring that you can get better prices in transactions.
4. Commission-free trading: We do not charge any transaction commissions, so you can trade with confidence without worrying about extra fees.
5. 23-hour trading: Our trading platform offers 23-hour trading, allowing you to trade according to your own schedule. Gold trading is available from 06:00 to 05:00 the next day.

Now, you can simply open the uSMART SG app, find "Commodities" on the "Discovery" page, select "Gold", and unlock gold trading. The minimum investment is 1 ounce, and you only need a margin of approximately $460 to start trading.

 

How to place a trade on uSMART mobile application：

After logging into the uSMART SG app, tap on "Quates" at the bottom of the page.Scroll to the right until you see the "Commodities" section.Search for XAU and XAG to add them to your watchlist.Tap on the desired asset (gold or silver) to view trading details.Tap on the "Trade" button at the bottom right corner.Select the "Buy/Sell" function.Enter the price, quantity, and trading conditions.Submit your order.For image-guided instructions, please refer to the following steps:

This diagram is provided for illustrative purposes exclusively

 

When can trading be conducted on uSMART:

Trading Instrument	Trading Hours (Summer Time)(GMT)	Corresponding Beijing Time	Trading Hours (Winter Time)(GMT)	Corresponding Beijing Time
XAU/USD	Sunday10:00pm to Friday 9:00pm	Monday 6:00am to Saturday 5:00am	Sunday11:00pm to Friday 10:00pm	Monday 7:00am to Saturday 6:00am
XAG/USD	Sunday10:00pm to Friday 9:00pm	Monday 6:00am to Saturday 5:00am	Sunday11:00pm to Friday 10:00pm	Monday 7:00am to Saturday 6:00am

Note that forex and metal trading hours span 23 hours (excluding GMT time from 22:00 to 23:00).

 

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Important Notice and Disclaimer:

We have based this article on our internal research and information available to the public from sources we believe to be reliable. While we have taken all reasonable care in preparing this article, we do not represent the information contained in this article is accurate or complete and we accept no responsibility for errors of fact or for any opinion expressed in this article. Opinions, projections and estimates reflect our assessments as of the article date and are subject to change. We have no obligation to notify you or anyone of any such change. You must make your own independent judgment with respect to any matter contained in this article. Neither we or our respective directors, officers or employees will be responsible for any losses or damages which any person may suffer or incur as a result of relying upon anything stated or omitted from this article.

This document should not be construed in any jurisdiction as constituting an offer, solicitation, recommendation, inducement, endorsement, opinion, or guarantee to purchase, sell, or trade any securities, financial products, or instruments or to engage in any investment or any transaction of any kind, nor is there any intention to solicit or invite the purchase or sale of any securities.

The value of these securities and the income from them may fall or rise. Your investment is subject to investment risk, including loss of income and capital invested. Past performance figures as well as any projection or forecast used in this article is not indicative of its future performance.

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