Why there is big spread in Gold?

[lgarhboularbah]

not 10points exacte but ..i mean that the point in the gold pair not the same at the other well it seems like the gold pair is just like the exchange you need always a big money to trade on all i have to tell you is this pair more dangerous than the other and we should avoid it

[realman]

All precious metal demand day by day increased. Among them Gold is very much. Many people stock the gold for future. In Forex Gold trader a large number. For this it's high liquid. Where we can not a single country because day by day world going to risk. Gold price depend on USD price. If we stock the Gold. It's save. In Forex many trader earn money by using GOLD/USD pair. It's reliable and high liquid so that it attract very quick.

[samuelkanu]

I think it is due to the volatility that is why you need big money to trade gold.I have a friend who trades gold but he uses micro lots and he likes the profit because of the volume.I think the spread is 100

[dog]

well gold may be having big spread, due to its demand, but compare to its movement or market volatility, the spread is relatively comparable to other currency pairs in my opinion. So i dont feel any difference trading it and currency pairs like EURUSD, GBPUSD

yes the big spread of the gold is due to its demand.but gold trading requires more capital.and i heard that trading in gold is not safe like trading the currency pair...i don't know whether it is true or not

[nilesh]

In trading gold there is huge possiblities of gettinf huge profit. As its movement is faster then currency pairs and also many many people do trade in gold. Therefore the broker set the Gold spreads high as they earned from spreads.

[alam]

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.

[nilesh]

es ka mugh ko itna ilm to nahi par jahan tak mera zahen kaam karta ha k es ki waja ye ha k ek to gold ki price dosri her cheez se zziyada ha or es ki values kafi up down rahti hane es se kafi loss or kafi profit app kama saktey ho

[ishvara]

I noticed that usually currency pairs have 2-3 pips spread but in gold it is biggest 10 pips, do you know why so. Bt i do love trading in gold despite this huge spread there is good opportunity to make profit.

Personally, i do not know why most forex brokers keep a very large spread in gold commodity. Most brokers have a spread of 60 - 100 pips in their gold commodity. I guess it is special and makes a lot of money and that is why brokers keep the spreads that high.

[alam]

I think the gold will be exposed to a large spread because there are differences in spreads gold about 100 points and a number different from the others, but it is also comparable with the profit if you know about trading gold. advantages can be obtained with great because the movement of the volatile.

[speedy]

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.

Yes, you are right, gold is so much expensive so it spread is also very big. Nowadays one ounce gold costs $1730 so for 1 lot $1 spread is not too much as compared to its price.