Gold Transactions
Thanks to its ease of processing and durability, it has been a metal that people have used for various purposes for centuries. It appears as jewelery with its aesthetic appearance, as ingots as a reserve medium, and as money as a medium of exchange…
Gold has been a metal that people have used for various purposes for centuries, thanks to its ease of processing and durability. It appears as jewelery with its aesthetic appearance, as bullion as a reserve medium, and as money as a medium of exchange.
Gold formed the basis of the monetary system between 1870 and 1930, and played a key role in the markets by making 1 ounce equal to 35 dollars with the Bretton Woods System (1944-1973). In 1973, gold’s feature as a fixed exchange medium with the dollar was terminated, causing it to be used as an individual savings instrument and as part of central banks’ reserves. With the development of financial markets, interest in alternative investment instruments increased, and the demand for gold decreased until the 2000s. The increase in global risk perception in the 2000s enabled gold to be positioned as a safe haven in the markets.
There are many dynamics that determine the prices of gold, which has been a safe haven for centuries. The effects of these dynamics on gold prices need to be known one by one. Financial crisis and war have a positive effect on the price of gold, unlike the stock market and money markets. While the increase in oil prices and inflation rate also has a positive effect on the prices of this precious metal, interest rates have a negative effect on gold.
Internationally, 1 ounce is accepted as 31.10 grams of gold. In leveraged markets, 1 lot of gold transaction is calculated as 100 ounces. In other words, when a 1 lot gold purchase or sale transaction is opened on the platform, it corresponds to a physical transaction of approximately 3 kilos 110 grams. Considering that the ounce price of gold is 1270 USD, 1 lot of gold on the platform requires 1270 USD collateral when calculated with 1:100 leverage.
This precious metal, which is one of the most important investment and payment tools for both individuals and the general economy in our country, has become more investable in recent years.
Some difficulties are observed in physical purchases in the market, where mobility has increased in recent years. It is known that the rising price of gold is felt more in physical purchases, but remains limited in selling the gold in hand. However, the forex market eliminates such negativities and also offers a system that can be traded 24 hours a day, 5 days a week.
When you want to evaluate your investments in forex markets, our analysts provide information about the developments, news and economic data in the market. This allows you to continue your investments consciously.
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