Last update 2121.01.18
A very special forex symbol that includes gold is the XAU/USD pair. This currency pair tracks the value of one troy ounce of gold relative to the US dollar (USD 🇺🇸). It is a fact that gold is one of the oldest ways of storing value throughout history. However, do you know how gold affects forex prices? Let us help you understand, to improve your forex trading experience.
💹 When trading forex, we suggest you consider long term results.
What you can learn ahead 🎓
- Understanding the relation of gold and forex
- How to improve your forex trading performance with AI.
Understanding the relation of gold and forex 🧐
Gold-related forex pairs have two interesting market behaviors. This article will explore these two points for traders, as well as discuss how gold affects forex market prices.
The first interesting point is that gold reflects the state of political and economic stability. In other words, during times of geopolitical or economic uncertainty, investors seek safe-haven assets such as gold. On the other hand, when there are economic prosperity and political stability, the low returns from gold prices may lead investors to seek higher returns (and higher-risk assets) in other markets. The forex pairs related to gold can be an attractive option for investors seeking to diversify and find a wider variety of returns.
Whether related to political or economic uncertainty, when there is a demand to acquire gold, the gold-related forex pairs such as XAU/USD can become more volatile as investors engage in more speculative trading. On the other hand, when the price of gold decreases, either due to low demand or due to high supply, investors may seek to sell gold-related forex pairs, in anticipation of a price decrease.
Using Advanced Charting, from FxTrade Practice (FXCM.com) we can see more than ten years of trades.
It is possible to observe those two periods, first, between 2008 and 2012, with a good increase in the value of the gold-related forex pairs and a relatively low volume of transactions.
It was the period of uncertainty coming after the Lehman Brothers bankruptcy and the great global financial crisis that followed. The second period from 2013 to 2018, with a significant increase in volume and relative stability in the price of gold-related forex pairs.
What marks this second period is relative global economic stability
We can see that something has apparently changed in 2019. Probably the trade war US and China 🇺🇸🇨🇳 brought some uncertainty over the global economy in near future. However, events like these can also create opportunities if you have the proper tools to identify market signals.
In the forex market, information and education are like gold. Wiseinvest has a large inventory of internal and written knowledge to share with you.
The best way to trade forex
There are two ways to invest with our AI in forex without concern about the impact of gold.
1. Automated with AI-Trading. Check out the 3 steps to trade automated with our AI.
By trading forex automated with AI, you will save time and improve your performance without monitoring the market and managing trading platforms.
With Automated AI trading you do not need MT4 / MT5 and other trading platforms to invest in forex. All forex trades are automatically placed into your broker account every time that our AI system identifies a new worthy trading opportunity. You can monitor the AI trading performance in real-time directly on our dashboard.
Automated AI trading benefits ✅
- Setup in 3 minutes.
- Totally hands-off, from anywhere.
- Invest from just $100.
- APY of 40% over the past 13 years*.
- Lightning-fast execution & no slippage.
- No commissions, no management fees.
- Portfolio with 40 different automatic strategies.
- No MT4/MT5 or other platforms required.
- Test with a risk-free practice account.
- Trading results directly on our dashboard.
Don’t you have a broker account yet? Our AI is integrated to trade automated with the brokers FXCM and Oanda. Click here to open an account.
2. Manually with AI forex signals.
Wiseinvest also provides AI forex signals that perfectly fit into MT4, MT5, and any trading platform. To trade with our AI forex signals, you must simply copy the data you receive from each real-time signal into any forex brokerage account of your choice.
There are five unique variables for each AI signal, and each must be copied exactly, to match the performance of the signal as close as possible.
Each AI forex signal alert consists of the following five data points:
- Symbol (forex pair)
- Direction (long or short)
- Position size (number of units or lots)
- Take profit (price level to exit with maximum gain)
- Stop loss (price level to exit with maximum loss)
Check out how to trade with our AI forex signals.
- Subscribe to a Wise-Plan.
- Open a Brokerage account. Check this article about the best forex Brokers.
- Set an amount and a position size on our Wiseinvest dashboard.
- Our AI will send you real-time trading alerts by email and Telegram.
- Copy the signals and paste them into your Brokerage account.
All forex signals are sent every time that our AI trading system identifies a new trading opportunity. Our trading strategies are developed on a variety of time frames such as 4 and 8 hours.
Wiseinvest AI forex signals are Market Orders and you do not need the entry price. You can copy each signal while it is available on our dashboard. We do this way to assure that traders will just place signals while they are good to be traded.
You can trade forex with our free forex signals clicking here, or with our Premium subscription that provides you unlimited AI signals and automated AI trading in partner brokers. Whether you are a beginner or a professional forex trader, our AI trading system can help you save time and improve your trading performance. Get started with free AI.
When investing through Wiseinvest automated AI trading or AI forex signals, you do not need to calculate pips and change the leverage in your forex broker account. Learn more about leverage in forex trading by clicking here.
What is the AI performance in forex trading?
The Win Rate of our AI shifts as indicated by the period and can reach up to 95%. The performance depends on the proficient wilderness estimation metric, which implies that our model is beneficial at whatever point the Win Rate is more prominent than 60%. All techniques of our AI Trading framework look for stable returns and adequate outcomes to accomplish a normal return of 40% every year (APY), without the utilization of high influences.
We comprehend that what is important in forex trading is the conclusive outcome. Along these lines, the financial specialist needs to consider that Win Rate isn’t generally the best measurement to gauge execution in forex, as other signals suppliers unveil. For example, out of 100 exchanges, it is conceivable that lone 1 exchange is sufficient misfortune to make the 99 exchanges not productive. For this situation, the Win Rate would be 99%, yet the conclusive outcome would be unfeasible (negative).
We center around the arrival of 40% of APY and not simply on Win Rate.
It is basic to see that forex brokers may charge spreads, commissions, and overnight expenses in your trading account, and these elements can influence the AI execution. You can check our forex trading history to see more about AI Trading execution by clicking here.
How much do I need to trade forex with AI?
You can begin in forex trading with free AI signals or AI Trading records and make a store from only $100 in the brokerage. It is likewise conceivable to test utilizing a hazard-free practice account with our AI Tradingframework. In any case, to do a proficient hazard the board in genuine records, we recommend you start from at least $100. Notice that some forex brokers require diverse starting stores to trade forex.
What is the trading strategy of our AI?
Our AI procedure is the mix of various AI Trading frameworks, with more than 100 features, that characterize 40 distinct techniques which at the same time consider: Quotes of the 28 forex pairs, Supports, and Resistances in various time periods, Trends and Counter-patterns, Cross-markers, Index of each pair, Economic Calendar, Investors Sentiment.
Our AI examines those fundamental, technical, and sentiment factors that influence forex trading, and all models are assessed continuously utilizing various loads. In the wake of finishing the investigation, the decision of the signal emanation technique is made considering the improved probability of momentary benefit and the sum accessible for speculation.
Using technical analysis, our calculation considers not just the examples of different patterns, including backing and obstruction levels and cross-pointers, yet our AI is likewise ready to make its own ongoing record for every money pair, that is utilized to distinguish what is the best course and target.
Comparable to fundamental analysis in forex, the AI makes a connection inside the financial schedule to discover news information that can influence explicit cash sets.
- Investing in the gold market is an ancient human practice, and gold-related forex pairs incorporate that tradition that is adapted to modern financial markets.
- There is a tendency to run to gold-related assets in periods were uncertainty increases
- Popular gold-related forex pairs include the XAU/USD pair.
- The Artificial Intelligence (AI) can help you invest through the AI trading system or with the Wiseinvest AI forex signals, which is totally free of emotional judgments and aims to minimize losses during turbulent market events.
Better trades have bigger margins to operate; our AI forex trading system can help you to identify the best opportunities.
Disclaimer: Forex and Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money due to leverage. Forex trading is not suitable for everyone. You should consider whether you understand how forex and CFDs work and whether you can afford to take the high risk of losing your money.
The forex brokerages displayed shall disclaim the overall performance of traders in their platforms. Oanda warns that 76.8% of retail forex traders lose money trading CFDs. XTB warns that 80% of retail forex traders lose money trading CFDs. FXCM warns that 74.74% of retail forex traders lose money trading CFDs.
The performances aforementioned are not related to Wiseinvest AI forex trading and AI forex signals system. You can check the performance of our AI forex system on our dashboard.