When you think of precious metals, you think of things like gold, silver, or platinum.
What you may not consider is that they have more uses than just making fancy jewelry!
We all know that gold directly affects the value of a country's currency and is affected in return by the US dollar exchange rate, inflation, crude oil prices, etc.
Similarly, the value of silver and platinum is also dependent on these factors.
The most popular metals to trade are:
Gold (XAU)
Silver (XAG)
Platinum (XPT)
Palladium (XPD)
Trading on precious metals carries significant advantages over trading, for example, on stocks.
They have intrinsic value
They have a high level of liquidity
They can act as a hedge against inflation
For these reasons, precious metals have become a valuable tradable asset and continue to be popular with many traders around the world!
💡Tip
Usually, when the price of the USD moves up, the price of gold moves down, and vice versa. This can be an excellent indicator for trading USD currency pairs when there is volatility in the gold market.