When Not to Trade Gold Metal

There are times when you should not trade XAUUSD because at these market times/hours the online Gold market becomes illiquid and threfore also unpredictable. Illiquid means there are fewer traders compared and analyzed to other regular times. The times not to trade XAUUSD are:

News Time

Scheduled economic data reports are released/announced throughout many times during the month. This schedule of news reports can be found in advance on an News Calendar

There are 3 categories of economic news; yellow, orange & red, each category having a different impact on the price of XAUUSD. High impact fundamental news can really move the prices of XAUUSD, sometimes causing a spike in both directions, before price settling and heading towards one direction. These are high risk times where a lot of people get stopped out & it is best to avoid trading during these hours.

However, it is not just the economic news report announcements themselves that can affect the prices. The sentiments & predictions/forecasts of what the figures will be can cause the XAUUSD Gold prices to move in anticipation of this data report. It is thenceforth not a good idea to trade during the fundamental news announcements time.

How Do I Trade News - News Strategy Training GuideSome major economic/fundamental news like the NFP and Interest Rates decision can cause extreme price volatility which is extremely hard to trade and can cause extreme movements on XAUUSD Gold metal markets within seconds.

Economic data can cause a lot of speculation & thenceforth a lot of price movement.

Weekends

A lot can happen over the weekend leading to the price opening with a large gap. This can cause a big difference in your account balance. It is therefore always best to close all your trades before the weekend & do not leave them open over the weekend.

Market Close Times - NY closing

At the close time of New York trading session a number of trading positions are being closed or being swapped. This will lead to volatility in the prices of financial instruments & can cause the price to move erratically.

Asia Market

During the Asian market session financial transactions trade volumes are very low and the market moves and oscillates in a trading range of about 20 to 30 pips & it becomes very hard and difficult to trade the market because the prices falls flat. It is best not to trade XAUUSD at this time.

Holidays

Do not trade Gold during Holidays. This is because the Banks are closed and hence less participants in the financial trading markets. If banks close for holiday then the volume of transactions carried out is greatly reduced. This can lead to low volatility.

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 two when banks resume their operations. An Economic Calendar will include a schedule of bank holidays & Gold traders can keep updated.

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