When Not to Trade Gold Metal

There are times when you should not trade XAUUSD because during these market times/hours, the online Gold market does not have enough activity, so it is hard to predict. Not enough activity means there are fewer traders compared to other normal times. The times not to trade XAUUSD are:

News Time

Economic data is announced at different times each month. The schedule for these announcements is available ahead of time on an News Calendar.

Economic announcements are categorized into three tiers based on impact: yellow, orange, and red, each influencing the XAUUSD price movement differently. News classified as high-impact can cause substantial price swings, occasionally leading to sharp upward and downward spikes before settling into a sustained direction. These periods introduce elevated risk, and it is advisable for traders to abstain from market engagement during such times.

However, the influence on prices is not solely attributable to the actual subsequent release of economic news data. The collective sentiment and the market's forewarnings regarding the predicted figures can often provoke movement in XAUUSD Gold prices in expectation of this data report. Therefore, trading during the period immediately surrounding fundamental news announcements is generally discouraged.

How to Trade News - Guide to News Strategies. Big events like NFP or rate decisions spark wild price swings. They hit XAUUSD hard and fast, making trades tough.

Economic data can lead to substantial speculation, and consequently, considerable price fluctuations.

Weekends

A lot can happen when the weekend comes which can cause the price to start with a very large gap. This can make your account balance change a lot. So, it's always best to close all your trades before the weekend and not leave them open.

Market Close Times - NY closing

When the New York trading session ends, many trading positions are closed or switched over. This makes the prices of investments change a lot and can make the price move in unexpected ways.

Asia Market

Asian session volumes stay low. Prices stay in a 20-30 pip range and move little. Trading XAUUSD gets tough then. Best to sit it out.

Holidays

Avoid gold trades on holidays. Banks close, so fewer players join. Less volume means lower swings and risks.

Holidays like Christmas & New Year, XAUUSD traders should not trade on these days & should take time off during this week of Christmas upto New Year, date 2 when banks resume their operations. An Economic Data Calendar will include a schedule of bank holidays & Gold traders can keep updated.

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