In the Forex market, precious metals are treated as currencies, and are traded around the clock in pairs with other currencies. Their low or negative correlation to other asset classes provides an effective means of diversifying portfolios and hedging risks.
Gold, the mother of all currencies, still plays a prominent role in today's markets. Used primarily as a store of value, its price varies based on sentiment more than the laws of supply and demand. It is mainly influenced by factors such as financial stability, inflation and geopolitical events.
Like gold, silver is a reserve currency. However it is also a highly sought-after commodity for a variety of technological applications. While it trades generally in line with gold, it is subjected to higher volatility due to the influence of industrial supply and demand.
Platinum and palladium are mainly used to produce jewelry, computer components and catalysts to refine petroleum and chemicals. The greatest demand comes from the automotive industry, which relies heavily on the metals. They are rarer than gold and most of the world production is concentrated in South Africa and Russia. They are the most volatile of precious metals.
Trade Gold (XAU), Silver (XAG), Platinum (XPT) and Palladium (XPD) against the main currencies.
Precious metals offer insights into economic health and are often viewed as a safe haven during times of economic or political uncertainty.
Symbols | Minimum spreads (points) | Margin requirements | ||
---|---|---|---|---|
Standard 1K USD | Premium 10K USD | Prime 50K USD | ||
XAUUSD | 0.29 | 0.26 | 0.23 | 2% |
XPDUSD | 3.6 | 3.3 | 3.1 | 20% |
XPTUSD | 4.1 | 3.8 | 3.5 | 20% |
XAGUSD | 0.018 | 0.013 | 0.010 | 5% |
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