Gold Trading Hours: Trade at the Right Time
Interested in Gold trading? Well, who is not? Gold’s global demand, high profitability and wide acceptability attract traders. Every trader wants to trade in gold at least once.
And why not? The safe-haven asset gives attractive returns to traders. Gold is a global asset; traders throughout the world can consider trading it. However, determining the right time to trade gold is such a difficult task.
Well, not to worry. In this Carlos and Company’s blog, we will discuss the gold trading hours and the best time to trade the precious metal.
What are gold trading hours?
Gold trading hours can be defined as the time frame in a day during which traders can buy or sell the precious metal. Simply, it refers to hours at which the gold market remains open for trading.
In gold trading, the time frame plays a crucial role. The profit probability, risk, volatility, liquidity, and the overall market conditions can change with the change in trading time.
Here's a quick look at what you'll read
Gold trading is a 24/5 affair: sessions run from 5 PM EST on Sunday to 5 PM EST on Friday.
Gold trading is open every day from 5 PM EST on Sunday to 5 PM EST on Friday. You are free to trade gold 24/5 during the week.
Most weekdays experience 24-hour nonstop gold trading. You can trade gold anytime, given that your broker does not prevent you from doing so, except during short gaps for maintenance or rollover.
The best time of day to trade gold is when markets are most active, most often between 8 am and 12 pm EST, when London and New York markets are both open.
When the Gold Market Remains Open
Gold can be traded in the over-the-counter market or on centralized exchanges. Also, there are several ways to trade gold such as gold options, gold ETFs, gold CFDs, gold futures and others.
Basically, gold trading hours differ from market to market and country. So let us discuss the trading hours based on different markets:
Gold Market Open Time in Forex
A forex market is a place where you can trade in centralized currencies and make money from exchange rate fluctuations. You can even trade gold against currencies in the forex market.
Like the XAU/USD, the most famous pair where you trade gold against the US Dollar. You can even go for options such as XAU/EUR, XAU/GBP, XAU/JPY and others.
If you are looking for the XAU/USD market open time, it remains open for 24/5. You can trade gold around the clock, except weekends, in the forex market.
Gold CFD Trading
God CFD trading is a way to trade in gold without owning the underlying asset. It allows traders to take advantage of both rising and falling markets. Like the forex, the gold CFD market also remains open 24/5.
COMEX Exchange (Gold trading hours in USA)
6:00 PM – 5:00 PM EST, Sunday to Friday
London Metal Exchange ( Gold trading hours in UK)
1:00 AM – 8:00 PM GMT, Monday to Friday
Tokyo Commodities Exchange ( Japan and Asian Region)
12:00 AM – 6:15 AM UTC, 7:30 AM – 8:30 PM UTC
Best Time To Trade Gold
The best time for gold trading differs depending on the market, capital, risk, and strategy. However, below are the time frames that offer the best market conditions for gold trading:
New York and European Session Overlap
When trading gold in forex, there are four trading sessions: London, New York, Tokyo and Sydney. London and New York sessions observe the most trading activities.
And the overlap of the London and New York sessions is considered the best, especially for trading the XAU/USD and XAU/EUR pairs. The overlap occurs during 8:00 AM and 12:00 PM EST.
Mid-Week Days
During the opening and closing hours of the week, the trading volume is low. Major events are released in the middle of the week. As a result, the market is most active from Tuesday to Thursday that resulting in high liquidity and stable market conditions. So, even the mid-week days are the best for gold traders.
Major News Release Days
Gold is a financial asset sensitive to market changes. It has strong negative correlations with the US dollar. So all the news that impacts the US Dollar also impacts gold.
Gold observes significant price swings during major news releases and Fed announcements. So, for news traders, the major news release days offer great conditions for trading gold.
Unfavorable Event Period
Gold is known as safe haven asset because it protects traders against inflation and unfavorable market conditions. During inflation, war, geopolitical or economic crisis, the value of gold tends to rise. So traders can even consider trading gold during such scenarios.
Tips to Determine the Best Time to Trade Gold
The best hours of gold trading may not be the best for all traders. So, for finding your ideal time to trade gold, here are some tips:
- Consider the asset you are trading gold against. Like if you are trading gold against the Japanese Yen, then the Asian market hours will be more suitable for you.
- Check the market liquidity and trading volume. High liquidity periods offer stable market conditions and ease in exiting or entering trade. So, consider trading during high liquidity hours.
- Volatility can magnify both the trading profit and risk. During high volatility, it became difficult to predict the market. So, analyze the volatility for gold trading.
- Consider your trading experience. If you are a beginner, then you should trade during stable market conditions, and if you are an advanced trader, you can even trade during highly volatile market hours.
Bottom Line
The knowledge of gold trading hours will make you stand out from the crowd. It can enhance your strategy, maximize your returns, and increase your trading accuracy.
You can even identify trading opportunities earlier and make quick trade decisions. Remember, trading is all about placing the right trade in the right asset and at the right time.
If you struggle to do so, we can help you with that. At Carlos and Company, we provide customize gold trading signals analyzing the right time frame for our clients. Get in touch to try our demo signal services.