Why there is big spread in Gold?

[vineet]

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.

[narendra]

Gold is a precious metal and has a very high price so due to it high cost its spread is also high and we need comparatively more margin for trading gold as compared to currencies.

[patil]

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.

[ShoSho]

I think there is big spread in gold as it have fast movement or because there is less traders that trading with gold so it has big spread while the pairs that are popular it has small spread.

[anubhavsingh]

I think there are so many buyers and sellers for gold and more and more people are investing in gold because they find gold as best opportunity as investors so this is a trend these days and last few years and this is why brokers want to take some advantage by earning some money from gold traders.

gold ki trading bahut hi zaruri hoti hai aur bahut se tradres isme buying aur selling karte hai
shyd issi wajh sek ayi bar iska spread bahut zada ho jata hai..gold sabse zada volatile commodity maani jati hai aur iski trading kel iye bahut knowledge ki zarurat padti hai

[bestlooser]

I think there are so many buyers and sellers for gold and more and more people are investing in gold because they find gold as best opportunity as investors so this is a trend these days and last few years and this is why brokers want to take some advantage by earning some money from gold traders.

[raka999]

I think it's very fast movement of gold, so it is natural that the spread is also very wide. to perform the movement of 100 pips can be just a matter of seconds. for that, for the beginner is very risky trading with gold.

[forexman]

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.

inorder to trade gold you should have more capital and also good margin otherwise the account will blowup when price goes against you so we have to be careful while trading tahts why i am not trading gold at now due to high spread and after when i have big capital i will trade

[netra]

Gold k elawa b kuch pairs aisy hen jin main spread bohy jyada hy, mery khyal sy gold main spread ic lye b jyada hota hy k gold ki movement boht speedy hoti hy agr spread 3 pips ho tu mostly log ic main scalping krna start kr den.

[netra]

i also have the same question. why gold has high spread. it is the most lucrative commodity beside oil. if the spread is low, then a lot of trader will trade it. happy trading