Why there is big spread in Gold?

[fxquest]

Gold mein trading bohot hi ziaada risky hoti hey, is mein spread bhi dollars mein hota hey na k pips mein. is ka normally spread 1 dollar hey.is mein ziada ter mesla margin k hota hey, kafi margin chahiye hota hey

Yeh sahi bat hi ki gold trading me margin jyada lagta hai, lekin isse gold trading ka attraction kam nahi hota, pehle to acche fundamentals ke karan isme risk limited hai aur fir yadi aapke pas kam margin hai to cents account me bhi gold me trade kar sakte hain, jisme .1 micro lot open karne ke liye apko lagbhag 1.8$ ki jaroorat hai 1:100 leverage use karne par.

[jai]

Gold mein trading bohot hi ziaada risky hoti hey, is mein spread bhi dollars mein hota hey na k pips mein. is ka normally spread 1 dollar hey.is mein ziada ter mesla margin k hota hey, kafi margin chahiye hota hey

[jai]

gold is unrenewable natural resources, so it's no wonder the price will always up and no intention to goin down. the more it's become rare in the market then the more expensive it will become. And the big spread that gold has is because the broker want to protect their interest, since many traders already knew that gold always going up. so it;s kind of easy to predict where gold gonna move. by applying big spread, traders, especially the new one who don't know the characteristic of gold will prefer not enter the market.

[siddesh]

if we see gold movement in bigger time frame, we may think that gold only about buy and buy, cause the graphics only showing the rising chart, but if you change the TF into the smaller one, you will see the same pattern like the currencies has. it also contain high and low. Gold have a very slow movement but stable for the long term. cause this reason, many traders choose not to trade gold. the more rare a currencies/ commodity to be trading, it will raise up the spread. so, big spread not only happened to gold but to all currencies and commodities that don't have an active trading session.

[fxquest]

I do trade in gold and even though spread is 10 pips a bit higher than any other pair but i still find it worth as the movement is quite sharp and we can make up this spread in few moments often.

[niteshforex]

Even though the spread is 1$, you should note the volatility of Gold can make that 1$ spread run into a loss of $1000 if you are on the wrong side of the trade. In a contenst that I participated in sometime ago, I traded gold and using 2 lot size and the account got blown because gold moved over 5000 points in less than 1hr.

[vikas]

Gols is a strongest commodity for trading in the forex market if you set your leverage on 1:1000 you can trade on gold with low capital I agree gold is very risky but it provide a chance to earn good profit in less time with small investment.

[nilesh]

Yes, gold has high spread when compared with major currency pairs. Because, its movement is huge per day. So, you have chances to get huge profit. So, they set spread high for gold. Gold is not suitable for scalpers, its suitable for longterm traders only.

[pooja]

Gold has very vast movements and it has been moving huge number of **** from last few months so the spread has been increased in gold so that brokers can also make their money.

[ishvara]

I think that the reason why gold has the highest spreads in the forex trading field is because it is the most volatile forex trading pair and everyone in forex trades in it either directly or indirectly.