Gold is one of the oldest investment tools. It is preferred by investors during crises, uncertainty, and as a means to avoid risk. Unlike money, gold cannot be printed, i.e., it cannot be created at the whim of those in power. That's why investors also prefer it as a hedge against inflation.

The advantages of trading through financial instruments are:

• Trading takes place 24 hours a day from Monday to Friday;
• Physically accessible to everyone;
• Lower costs - no need to transport or store physical gold;
• Trading with financial instruments is more liquid than buying and selling physical gold;
• You have the opportunity for quick reactions;
• Accessible with small amounts - trading on margin is offered with financial instruments – i.e., you don't need to own the full amount of the investment you are making, only a certain small percentage of the value of the instruments.

Factors that traditionally influence the price of gold:

• Reserves of central banks - Despite central banks diversifying their monetary reserves, a large portion of them is concentrated in gold rather than paper money. This raises the price of gold.
• Fair value of the US dollar - Usually, the price of gold is inversely proportional to that of the US dollar: a stronger US dollar leads to a lower price of gold; a weaker US dollar is likely to result in a higher price of gold.
• Status as a safe-haven investment (wealth protection) - During economic uncertainty, many people redirect their investments towards gold due to its status as a secure investment. When the expected or actual return on bonds, stocks, or real estate decreases, interest in investing in gold increases, contributing to its price increase.

How can one trade gold with ELANA Trading?

- Gold as a currency pair

Gold can be traded against silver or against various currencies in the form of a currency pair on the currency markets - the so-called spot trading (spot market). On the Forex359 platform and on ELANA Global Trader.

- Gold futures contract

Gold can be traded through a futures contract on the ELANA Global Trader platform.

Specifics when trading with futures contracts:

• Commission is charged, depending on the number of traded contracts;
• The futures contract has a specified expiration date. Before it expires, a rollover of the position is necessary – i.e., closing the contract with the approaching expiration and opening a new one with a more distant expiration. Otherwise, the position will be automatically closed upon expiration;
• One futures contract consists of 100 troy ounces of gold;
• With a one-dollar change in the value of gold, the trader's balance will change by $100.

- Contract for Difference (CFD) on Gold

Contracts for Difference (CFDs) represent a derivative instrument for ordering the purchase or sale of a certain quantity of gold. CFDs are traded on margin and allow investment with smaller amounts.

Where to trade?

On the ELANA Global Trader platform, CFDs on commodities, including gold, are offered. There are no trading commissions. There are low initial volume requirements compared to futures contracts - a minimum of 1 troy ounce.

- Gold through Exchange-Traded Funds (ETFs)

The ELANA Global Trader platform offers the possibility to trade with over 3,000 exchange-traded funds, including those related to gold. Since ETFs are traded like stocks, 50% of their market value in ELANA Global Trader can be used as collateral for margin trading with other financial instruments. They can also be traded as CFDs on stocks.