Gold Intraday Tips

Posted by Mukesh Kumar on October 23rd, 2019

The precious yellow metal has allured people since ancient times. Gold has been looked upon as an investment avenue for long. It is one of the most malleable and ductile metal and also has a high melting point and therefore it is easily recyclable.  Due to these properties, it’s always in demand.

In ancient times it was used mostly to make ornaments and till today gold’s ornaments are in popular demand. Traditionally it was in practice to invest in gold by buying the physical quantities of it, but in modern days there are modern ways of investing in Gold intraday tips.

Like many other commodities and non-ferrous metal, gold is also traded on the MCX.

On MCX, the price of gold is mainly driven by demand and supply, and therefore the gold market is volatile and speculative. Volatile markets offer ample opportunities for the day traders to earn the profit.

Day traders can earn consistent profits by following these strategies:

• Trade by using correlation factor

Gold is strongly correlated to YEN positively and has a strong negative correlation with the US Dollar. A day trader before taking a position should check these currencies index and can take the trade position to their benefits.

If YEN has moved up the chances are gold will move in the same direction.  It had a negative correlation with US dollars. Therefore, when the US Dollar is moving up, one should expect gold prices to come down.

However, while using the correlation factor to trade, market sentiments should not be avoided.

• Following strict stop-loss

Intraday traders have a concise time frame to make a profit, and often they end up making massive losses. So it is better to play the intraday trades by putting the strict stop-loss. In the case when a trade goes wrong, and stop-loss is hit then it is advisable to accept the mistake and exit the trade rather than being optimistic and ending up in a considerable loss.

Remember minimizing the losses is also considered as gains when we talk about intraday trades as they are very risky and volatile too.