What is the right time to invest in gold?

What is the right time to invest in gold?

Gold, also known as a safe haven, attracts a large segment of investors, because of its distinctive and unique ingredients that make it a good choice for those looking for financial returns.

In addition, some view it as a means of hedge and protection against inflation and sharp fluctuations in currency exchange rates.

However, the real benefit from those many characteristics that distinguish gold from other assets depends mainly on determining the most appropriate time to invest in it.

The right time to invest in gold

Timing is one of the cornerstones of a successful investment in any field.

The importance of this factor multiplies when it comes to investing in various financial assets, including investing in gold via the Internet.

Rather, it can be said that the whole matter and the success of your investment experience as a whole are closely related to being able to determine the appropriate timing to hold and complete your deals, whether by buying or selling.

As for the appropriate time to invest in gold, it is meant to refer to the periods that witness the highest level of demand and, accordingly, the highest rates of liquidity flow.

These are the timings targeted by those with experience in the financial markets, which are determined according to several factors, the most important of which are:

Best days to invest in gold weekly

Several studies indicated that the second half of the week, specifically the period between Tuesday and Thursday, represents the appropriate time to invest in gold in the appreciation of the largest sector of professionals.

You notice that the XAU/USD pair is reaching its maximum levels during those 3 days.

Where the volume of demand for it doubles, and this is accompanied by a relative increase in the price value.

News release times and economic data

It also notes that the issuance of periodic news releases and economic data issued by official authorities positively affects gold prices.

Based on this, the times of issuance of these reports and bulletins can be considered as perfectly appropriate times to conclude more profitable gold deals, the most prominent of these bulletins and the most influential are the following:

  • Japan Fundamentals: 11:50 PM.
  • Euro Fundamentals: 7.:45 AM.
  • USA Economic Figures: 1:30 PM.

The economic data models mentioned are the most prominent and important among the most important stock exchanges around the world.

However, the reports issued by the US market sessions remain, of course, the most important, given the close correlation between the dollar exchange rate and the price of gold

The right time to invest in gold in terms of volume and activity

It was noted in advance that volume and activity rates are among the most important factors affecting the prices of any financial asset.

Gold prices in particular and the most appropriate times to invest it, peak during the periods that overlap the sessions of the major financial markets around the world.

Which results in a state of momentum and popularity is a strong catalyst for the movement of the price of gold or the gold/dollar pair.

Overlapping the US and European market

The financial markets are witnessing more activity daily between 1:00 PM and 5:00 PM GMT.

This is because that period witnessed an overlap between the sessions of the two strongest trading centers in the whole world, namely the American market and the European market.

Accordingly, this period represents - in the opinion of most analysts - the best time to trade gold, given that about 80% of the daily trading volume takes place through these two markets.

European and Asian market overlap

The second largest and strongest global overlap occurs between the financial market sessions between 7:00 AM and 9:00 AM GMT.

Which represents the hyperactivity during which the European and Asian markets together.

This is also one of the times that professional gold investors target, because of the positive price movement resulting from the increased demand and appetite for the financial asset.

Online gold trading platforms

After identifying the appropriate time to invest in gold, it remains to identify the investment mechanism itself.

Which has become easier and faster compared to what it was in the past, as starting your investment journey only requires opening a real account through one of the trading companies to be your gateway to global stock exchanges.

And then start investing effectively in an unlimited number of financial asset options, including precious metals.

It is recommended here to choose the licensed trading companies that have the accreditations of the most prestigious financial regulators around the world, and that have a long history and great experience in this field.

Advantages of investing in gold online?

The concept of investing in gold includes more than one mechanism through which to take advantage of fluctuations in the prices of this precious metal.

In the past, many preferred to keep the same metal - in the form of ingots or artifacts - to be sold later when its price increased, but today, thanks to the emergence of online trading platforms, things have changed for the better.

What distinguishes investing in gold online is that you do not have to physically own the financial asset, but rather just trade its price and take advantage of its permanent movements to achieve real material returns.

This is in addition to many other elements of excellence that contributed to making it the ideal choice for many, the most important of which are:

  1. Instantly benefit from any change in gold price trends.
  2. Suitable for owners of small and medium capital.
  3. Rely on the leverage feature to open positions with a greater value.
  4. Lower fees and commissions are charged on trades.
  5. The ability to trade in the form of a pair against the dollar or through various derivative contracts.

What is the importance of gold charts?

Charts are of paramount importance in investing in gold online, as they are the tool that can determine the right time to invest in gold in real time.

It analyzes the price movement during a time range, through which it can anticipate the future movement and take appropriate decisions based on it.

Charts are available in different forms, but only three are the most common and widespread:

  1.  Japanese Candlestick Chart.
  2. Line Chart.
  3. Bar Chart.

Should you invest in gold at specific times?

Online gold investing is available 24 hours a day and this is one of the main distinguishing factors of digital trading.

As for the aforementioned times, they are weights and preferences, but they are not binding on investors in any way.

Rather, their investment decisions are made based on the results of fundamental and technical analysis and their future expectations of gold price movements.

How do you start investing in gold online?

In the past, investing in gold was limited to certain categories because it was characterized by a degree of complexity, and starting this type of investment required a relatively large capital.

Today, you can start your investment journey quite easily online by following these steps:

  1. Determine a licensed and reliable trading company.
  2. Choose to open a real trading account.
  3. Fill in and enter the required data.
  4. Attach the required supporting documents.
  5. The minimum deposit value to open the account.
  6. Access the platform and start making deals in real-time.

What are the most important factors affecting the price of gold?

Being able to determine the appropriate time to invest in gold presupposes knowing in advance the most important factors that control its price movements, which are directly affected by several factors, the most important and most important of which can be summarized as follows:

  1. Supply and demand volume.
  2. Geopolitical factors.
  3. Fiscal inflation.
  4. US dollar exchange rates.

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