What you need to know about Gold & Silver Trading

Phillip CFD Blog | Gold & Silver Trading

 Jasvind Singh, Marketing Manager

Published On: 21 September 2017 | 4:00 PM

Gold? Silver? Gold? In the past few weeks, everyone has been talking about investing in Gold. With the rising tensions in North Korea over their nuclear program development, investors are moving into safe-haven assets such as gold. In addition to that, Hurricane Irma, the strongest observed in the Atlantic since 2007, wiped out about US$2.2 billion of assets in the affected area. And with the looming debt ceiling problem in the US, fear has begun to strike among some people. Such situations often encourage investors to turn to gold to protect their wealth and I have highlighted it before in my article, “4 reasons why Gold should be part of your portfolio”.

Where is Gold & Silver Price Today?

On the week of 28th August 2017, Gold successfully broke above the 1,300 resistance level. The last time gold was trading above this price level was almost a year ago. Since then, Gold tested the 1,300 level twice, in April 2017 and June 2017. The 1,300 level has now become the new support level and the chart below, using our Gold USD100 CFD, shows exactly this:

Phillip CFD Blog | Gold Chart

There has been a rally in the gold price since July 2017, however, the past week or so saw the price of gold correcting to the 1,300 support level and seems to be nicely bouncing off that level.

Silver is showing the same pattern as gold. A rally since July 2017, breaking above the 17.25 level in August and have now corrected back to that level.

What should I look out for?

FED Meeting on 19th and 20th September

While writing this article, the meeting and announcements had not taken place. So, you may want to check back on it. The biggest question everyone has on their minds when FED meeting comes along is, “Will there be a rate-hike?” While most of us don’t expect a rate hike till December, do note that in the past 1 year, we already had 3 rate hikes, two of which was in 2017 itself. The next one is predicted to happen between now and December.

Another question that’s flying around the market recently is, “Will Janet Yellen continue to be the FED Chair?” Yes, her 4-year term is nearly up. The exact date is the end of January 2018. However, with just a few more months to January 2018, it will be difficult for her to avoid such questions. Also, she was appointed by President Barack Obama and will President Donald Trump want to work with her? As for the investors, replacing a caliber like Janet Yellen will it be good or bad?

Price Levels

From the chart earlier, we know that the 1,300 level for gold and 17.25 level for silver are strong support levels. These are the 2 levels that investors should be looking out for. Breaking below will be a sign of bearishness and the ability to hold above these levels will get trend traders to be very excited. This is because, with an entry around 1,315, a stop loss at 1,299 and a profit target at 1,350, the risk-to-reward ratio for this trade will be about 2.1, a very healthy one.

How to trade Gold & Silver?

There are many ways you can add Gold and Silver to your portfolio. The most obvious one is to buy physical gold or silver. However, you will need to store it somewhere. Most people get a vault. Another method is to buy ETFs or gold mining stocks. If you need a list of these counters, please download it for FREE at the bottom of my article, “4 reasons why Gold should be part of your portfolio”.

Another way is to trade the Gold Indices. Customers of Phillip who have CFD facility enabled in their account can access these counters. If you don’t have CFD facility in your account and want to enable it, please let us or your trading representative know and we will get it done for you. Enabling the facility is FREE as well. If you don’t have an account with Phillip get started HERE. It only takes 10 minutes and it is FREE as well.

BONUS

Congrats for reading all the way down here. As a special reward for you, we are allowing you to trade our Gold USD1 CFD and Silver USD50 CFD indices at 50% off commission for the next 2 months. In order to enjoy this promotion, simply leave your details via the contact form below. A representative will be in touch with you once the free trades has been enabled in your account.

That’s all for now folks.

Follow Phillip CFD on Facebook

YES, I WANT TO OPEN A TRADING ACCOUNT!

Simply leave a message via the button on the bottom right of your screen, drop us a call at +65 63364564 (9:00am to 6:00pm, Monday to Friday) or email us via cfd@phillip.com.sg.

We are part of the PhillipCapital Group of companies that was founded 42 years ago & with offices in 16 countries and regions. The group has over $1bn in shareholder funds and $30bn in client assets under custody and management globally.

PhillipCapital is a name you can trust.

Related Articles

4 reasons to invest in gold

blog10

Every seasoned investor out there will tell you that gold MUST be part of your portfolio. Some say 20%, others say 50% of your portfolio should be in gold….

Australia VS Singapore

Phillip CFD Blog | Australia Cover

23 million people. 150 million sheep. Yep, that’s the land down under a.k.a. Australia. If you happen to chance upon my previous article or video, you would know that Australia has been the second best-performing stock market…

#3 Facts - Australia Market

Phillip CFD Blog | Australia Banner

Many of you have probably heard the story of the 2 salesmen who went down to South Africa in the early 1900s. The first one came back and reported, “Situation hopeless, they don’t wear any shoes!”…

What is ETF Trading?

Phillip CFD Blog | ETF Investing

Markets are buzzing! Are you? The Dow Jones Industrial Average has been hitting new highs in 2017. Amidst all the news about the vibrant US Market, there is a little boy growing up behind the scenes called ETFs…

Intelligent Investor

Phillip CFD Blog | 5 top tips to be a better trader

As in the words of Peter Lynch, “If you don’t study companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.” I can say, almost certainly, that 80% of investors…

Losing Opportunities?

Phillip CFD Blog | CFD Trading

Confused when to exit a trade? Not sure if you should take profit? Here we discuss a trading strategy that you could always use in times of uncertainty. Never be left out on what is available for you.