There are numerous people who state that trading in gold, silver or any other precious metal is similar to gambling. This is a fallacious statement manufactured by unwitting traders. They probably don’t have a clue about the proper ways of gold trading and the recompenses it has. Successful trading needs deep forex gold market analysis as well as going through the historical facts and trends of this yellow metal.

Need of analysis tools:

For effective forex gold market analysis, you will find numerous techniques and mechanisms available.

  • You can use these conveniences to adequately understand the inner dynamics of this prospect-filled convenient market.
  • These tools can help you examine past trends and performances
  • Plus you can use them to formulate both present as well as future strategies concerning the commodity.

How does technical approach help in forex gold market analysis?

You being an FX trader must know that there are two authentic modes of conducting a quality market analysis – Fundamental and Technical. Between them, experts have regarded technical analysis mode as best for conducting forex gold market analysis!  

When it comes to examining short term price movements, technical indicators are really effective. Contrasting to the fundamental aspect of FX analysis, technical approach makes use of graphical presentations, charts for getting general price trend of commodities.

You get a clear idea about market situation, especially relating to entry and exit points. These charts and statistical diagrams help specify right time to purchase gold and the appropriate time to sell off this yellow metal to acquire maximum gains on your investment.

You will get more than 50 technical indicators or apparatuses for good quality forex gold market analysis and its price fluctuations.

3 tools for new traders:

If you are a new trader just starting off in the gold trade, then not every indicator may seem convenient for you to handle or understand.

So in that case there are there basic techniques which you can make use of.


  • Moving averages -This is a chart which indicates whether there will be a bullish or bearish or non-existent trend. This chart also indicates the resistant and support price. In case of higher MA charts, it indicates a bullish trend and a support level price and for a lower MA chart, it denotes a bearish gold market trend and a resistant level price.


  • Bollinger bands - This is a tool formed by John Bollinger mainly for indicating the level at which the price movements might get reversed.


  • Support and resistance - It lays down the point which states the entry and exit position for traders. Regions of price congestion namely the bearish or bullish trend are properly indicated.


For gold market price analysis

If you want to know forex gold price analysis, then you can make use of line charts or bar charts.


  • Line chart – This is the simplest form of chart and it just states the gold price at the end of a trading period.


  • Bar chart – Pretty similar to the line chart but information you get is more here. The bars show the highest price, lowest price, the opening price represented by the dash. On the left of the vertical bar shows the highs and lows and the closing price will be present right of the vertical bar.


There are other options too but it’s not possible to mention each one of them. However, the ones mentioned is efficient enough to get you started with forex gold market analysis. Now that you know all these, get started with forex and explore the benefits of gold or any other commodity market. Good Luck all!

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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