Learning to Trade the Forex Market

The beauty of forex is you can get started right away without any money and without having any idea what you are doing. To do this you open what is called a demo forex account. In your demo account you trade with fake money and you have fun learning how...

Gold Price Past US$1,150

LONDON - The price of gold soared past US$1,150 per ounce here on Wednesday for the first time in history, buoyed by the weak US currency and central bank purchases of the precious metal, analysts said. In afternoon trade on the London Bullion Market, gold jumped to a record high US$1,152.85 per ounce after forging a series of all-time peaks in recent weeks. (more...)

Gold vs. Fiat Currency

Gold in the Face of the Fiat Fallout Gold hit a new record yesterday. The price rose $22.50 to $1,139. And today we take up a foul and disagreeable task. We ask ourselves: what if we are wrong? If you bought gold when we first recommended it, ten years ago, you are in a very comfortable position. Gold sells for more than 4 times as much today. But what should you do now? And what if you didn’t go for broke on gold in the early ’00s? Is it too late to get in on the bull market? (more...)

Trading the Dollar With USDX

The US dollar index (USDX) is an important analytical tool for traders in just about any market. The USDX is actually a futures contract which means that if you have a futures trading account you could trade this instrument like corn, oil, gold or currency futures contracts. However rather than...

India Gold Purchase and Where the Dollar Falls

India Stampedes Into Gold

Two hundred metric tons of gold—the largest gold purchase in history. Think 44 Asian elephants. The buyer’s motive was clear: to get away from the dollar. But why did America’s leaders give the okay for the imf to sell America’s gold?

Late last month the Central Bank of India bought 200 metric tons of gold from the International Monetary Fund. It is the biggest signal yet that Asian countries are moving away from the dollar, the Financial Times inferred. As he swapped his country’s dollars for hard assets, India’s finance minister was blunt: The economies of the U.S. and Europe have “collapsed.” India was doing what it could to prepare for the coming meltdown. (more...)

Gold Outpacing All Currencies

Gold Continues to Gain Against All Currencies THE PRICE OF GOLD rose to fresh record highs against the US Dollar for the fifth session in six in early London dealing on Wednesday, recording an AM Gold Fix above $1114 an ounce. Up by more than 28% for 2009 to date for US investors, gold also rose against all other currencies, breaking its best level against the Japanese Yen since July 2008 above ¥3220 per gram as world stock markets gained, government bonds held steady, and crude oil ticked higher from $79 per barrel. Gold also broke new 8-month highs above €743 and CHF 1121 an ounce for Eurozone and Swiss investors, trading 6% and 4.5% respectively off February's all-time record peaks. (more...)

IMF: US Dollar “Still Over-Valued”

Gold Makes It 3 Records in 4 Days THE PRICE OF GOLD jumped to new all-time Dollar records for the third time in four trading days early Monday in London, trading above $1110 an ounce – up more than 27% for 2009 to date – as the US currency fell hard on the forex market. World stocks added 0.4% on the MSCI index to continue their four-month surge after Sunday's meeting of G20 political leaders in Scotland vowed to "continue to provide support for the economy until the recovery is assured." (more...)

A Gold Price, Roubini and Currency Overview

Gold Over $1,090 and Climbing Did you see the strong performance that gold put in yesterday? And it didn’t stop there… Overnight, gold is up another $7 on top of the $20 gain it had yesterday… So $1,090 and change should look pretty good to you right about now… That is as long as you are a gold holder! (more...)

Risk Aversion and the U.S. Dollar

Front and center this morning, we have a very strong dollar rally going on… It began yesterday mid-morning, when things turned on one thin dime. First, we had the US Manufacturing Index rise in September and the trading theme kicked in with the dollar getting sold on the good news for the economy… But then a strange thing happened on the way to the forum. Everyone began to fear what’s been going on in banking… Friday, the 115th bank failed this year, and suddenly traders, investors, hedge fund dudes, and everyone else, got a case of the flu… Not the “pandemic” H1N1 flu… This is the “chicken flu”… Chicken to continue to take risks in the face of a banking problems… Well, to think of it, maybe, just maybe, it’s not the “chicken flu” but the “prudent flu”! (more...)

Times To Trade

Trading the OTC (over the counter) currency markets offers an opportunity to hedge stock and bond investing, but really is more of a traded market following the ebbs and flows of global commerce than it is an investment arena to plan retirement from. Getting to know six major currency pairs...

Currency Rally Ended

Rumors Kill the Currency Rally Well, the non-dollar currencies didn’t enjoy such good news yesterday, as they got whacked a good one! After signing off yesterday, the non-dollar currencies continued to rally versus the dollar, and then the rug got pulled out from under them in a NY minute! What happened? The risk assets were dropping like the Cardinals’ batting averages at the end of the season. Well… Remember yesterday when I said that the data for the week looked like it might show some healing in the economy, which would be bad for the dollar? (more...)

The Four Letter R-Word

Forex traders hear a lot about Risk; whether the markets are tolerant, averse, or neutral. It is a headline that is bandied about on a regular basis. Quantifying the value of risk, and its forex impact, may be so much harder to do in the trading arena, than reporting each...