Precious metal prices, like Gold, Silver, and Platinum, often oscillate between trending and cyclical phases, creating distinct opportunities and challenges for traders. Understanding these dynamics is crucial for aligning your strategy with the prevailing market environment. Here’s an in-depth look at how these phases operate and how traders can use them to their advantage.
Trending Phases
In trending phases, precious metal prices move in a clear and sustained direction—upward in bullish trends or downward in bearish trends. These movements are influenced by economic details, including:
- Interest Rates: Changes in central bank policies, such as rate hikes or cuts, directly impact precious metals, which are non-yielding assets.
- Macroeconomic Data: Inflation reports, employment data and GDP growth often set the tone for the metals market.
- Geopolitical Events: Global uncertainty, like wars or trade disputes, tends to favor safe-haven assets like gold.
While economic factors influence market sentiment, price movement ultimately depends on the underlying buying or selling action. These phases vary in sustainability and depending on the horizon of the trade, different metrics should be used to derive the outlook.
Cyclical Phases
Cyclical, or range-bound, phases occur when precious metal prices fluctuate between well-defined support and resistance levels. These phases often suggest a balance between buyers and sellers, leading to indecision in the market. Key characteristics of cyclical markets include:
- Repetitive Movements: Prices oscillate within a specific range, often without a clear direction.
- Market Consolidation: These periods are often precursors to a breakout in either direction.
- Neutral Bias: There is no strong preference for upward or downward movements, making directional strategies less effective.
Trading a trending strategy in a cyclical market can lead to losses, as the lack of directional momentum results in false signals. Instead, range-bound strategies are better suited for these phases.
Insights from the GSC Morning Call
At GSC Morning Call, we provide daily insights to help traders navigate these phases effectively. Our analysis includes:
- Identifying Market Phases: Determine whether the day’s price action is likely to be trending or cyclical.
- Defining Bias: Highlight the underlying bias within each phase to guide trading strategies.
- Support and Resistance Levels: Offer indicative levels for planning entries and exits, minimizing risk.
By combining these insights with broader trend analysis, traders can position themselves to capitalize on opportunities while mitigating risks.
Want to know more?
Contact us via email ([email protected]) or WhatsApp (+65 6222 9703) to receive actionable analysis that empowers your trading decisions. Let us help you navigate the complexities of trending and cyclical markets with confidence.
Investing is a means many use to grow their wealth. If you’re currently reading this article, chances are that you would like to grow your wealth through investing too. Amongst the various investment options, precious metals have been proven to be a reliable choice over time. Here are 5 benefits of investing in precious metals:
Precious Metals Provide A Safe Haven During Times Of Market Volatility
Financial markets are affected by many variables such as economic downturns and political instability. Although there are anomalous events, precious metals have generally been proven to retain value through times of inflation. This is why you would hear people say that precious metals are go-to safe haven investments. In order to buffer your investment portfolio against market volatility, you may want to consider including precious metals in your investment portfolio.
Helps You Manage Portfolio Risk
When it comes to investing, diversification is key. By spreading your investments across different asset classes, you can minimize your exposure to risk. Investing in precious metals such as gold, silver and platinum offer a unique opportunity for diversification. Historically,these metals have shown a low correlation with traditional financial assets like stocks and bonds. During times of market turbulence, precious metals tend to retain their value. In some cases, their value even appreciates during volatile times, serving as a hedge against market volatility.
Preserving Your Wealth
Preserving your hard-earned wealth is just as important as building your wealth. Investing in precious metals is one of the few ways in which you can preserve your wealth. Unlike paper currencies, which can lose value due to political or economic instability, precious metals have been proven to be a lasting store of value. Through different historical events, precious metals have maintained their intrinsic value. They have also served as recognized forms of currency, providing tangible means to preserve wealth. Such characteristics are what makes precious metals an attractive option for long-term investment.
Buffering Against Inflation (Most Of The Time)
Inflation can erode the purchasing power of fiat currencies, making it crucial to find assets that can counteract inflationary pressures. Precious metals are widely regarded as a reliable hedge against inflation. As general prices rise, the value of precious metals tends to rise as well. This is due to their scarcity and inherent value, making them desirable during periods of increasing prices. While gold is often seen as a hedge against inflation, it’s important to note that its performance may vary in different inflationary periods. Diversifying your portfolio can help mitigate investment risks and maximize potential returns.
Portfolio Allocation
Maintaining a well-balanced and diversified investment portfolio requires proper asset allocation. Including precious metals in your portfolio can enhance its overall performance. Precious metals possess unique characteristics and behave differently from traditional financial assets. When other investments like stocks or bonds experience a downturn, the value of precious metals can rise, offsetting potential losses. Allocating a portion of your portfolio to precious metals can reduce volatility and improve risk-adjusted returns.
Conclusion
In conclusion, investing in precious metals offers a range of benefits for individuals looking to grow and preserve their wealth. Investing in precious metals provides you with an opportunity to diversify your portfolio. Precious metals investments help to mitigate portfolio risks as historically, they have shown a low correlation with traditional financial assets. By including precious metals in your portfolio, you can enhance your portfolio performance and reduce volatility. Ultimately, what you choose to invest in is dependent on your investment goals and strategy.
Discover a Smarter Way to Invest in Precious Metals with GSC Live! Seamlessly Buy and Sell Gold, Silver, and Platinum Online. Don’t Miss Out – Start Your Journey Today!
Governments around the world including the United States have been utilising monetary policy to aid their economies tide through this pandemic. I think that by now, you would understand with governments injecting liquidity into the market, inflation inevitably will creep up, which will in turn reduce your purchasing power. Investors are now looking at various assets to protect their wealth and if you chose Gold; should you buy into Physical Gold or Gold ETFs?
Let’s have a quick run-through for both forms of investment. With Gold ETFs, you get a transparent and convenient way to invest in gold. As long as the market is open, you are able to buy and sell Gold ETFs on the exchange, making it as easy as trading stocks on the stock exchange. Prices are relatively more inexpensive as the costs for production (premiums) are excluded from the ETFs. Furthermore, you do not have to be concerned on the storage of the assets.
However, with Physical Gold, it is one of the most secure form of investment. You are not exposed to any third-party risks as you are in full control of the asset yourself. In the event of unforeseen catastrophes, the value of your asset will still be there giving you the financial insurance you are looking for.
What if there is a third option that somehow allows you to have the best of both worlds? That third option will be Pool Allocated Gold. Rather than buying Physical Gold (fully allocated), you can purchase Pool Allocated Gold which is physical deliverable as it has the underlying physical precious metal, without paying the premiums upfront. At this stage, you enjoy the convenience of Gold ETFs, allowing to buy and sell anytime during the opening hours of the market. Should a time of emergency come, and you want the security of Physical Gold, you can simply swap your pool allocated holdings into physical Gold by paying the premium and bring your Gold bars home. This is essentially what GSC Live! allows you to do! Read more about GSC Live! and open your account today!
Sin Pong
With the use of MetaTrader 4 (MT4), a widely renowned trading tool commonly associated with forex, GoldSilver Central brings you GSC Live!. With convenience and flexibility in mind, this platform enables you to purchase pool allocated precious metals with just a click of a button. With your pooled holdings in the platform, you can choose to swap your pooled holdings for physical bars or coins or to determine a price level to sell it off and take profit.
Functions of GSC Live!
GSC Live! comes equipped with a set of indicators readily available for your use, such as Bollinger Bands, Commodity Channel Index (CCI), Relative Strength Index (RSI) and more. These indicators provide insights on price movements and price trends, supporting your decision to purchase or sell. Adding on to that feature, GSC Live! brings automation to the table. By indicating a price level to purchase or to sell, what we call a buy or sell limit, GSC Live! will execute the order automatically once that price level is reached, even during the wee hours of the night. Gone are the days of looking at prices and charts for countless hours!
Security and Physically Deliverable
“Am I just buying into paper Gold?” A question that I have heard numerous times and one of the main concerns that clients have over the past years. I would like to use this chance to address it. All holdings on GSC Live! are physically deliverable and are held within the GSC Vault network. You can swiftly convert your holdings on the platform into bullion bars or coins by informing us of your intentions and paying a premium (varies across different products) for the physical item.
Possibilities of GSC Live!
Here are some scenarios GSC Live! can fulfil your Precious Metals’ Needs:
- Doing your own Cost Averaging
You can slowly accumulate your target weight of Gold or Silver over a timeline you are comfortable with. (For eg. Buying 0.1oz of Gold every week for 10 weeks to convert into a Canadian Maple Leaf Gold Coin 1oz, averaging out the cost of coin.)
- Investing in Precious Metals within your specified Budget
By utilizing the buy limit function, you can set a price level to purchase the precious metal. Once you have done that, leave the rest to GSC Live!. When the price reaches the indicated level, the precious metal will be automatically be purchased.
- Short Term Physical Trades for Profit
Without allocated physical premiums, you can purchase pooled precious metals and if you made the right call, it will be easier to make a profit, leaving out the consideration for prices to cover the premiums cost.
Sign up today to start your precious metals journey with GSC Live!
Sin Pong
For all clients who signed up for an online account via our e-commerce store, you will be provided complimentary access to GSC Live! account where you will be able to view live Gold, Silver and Platinum Spot Prices 24 hrs, 5 days a week. This is also a cash ledger account that clients can view their cash balances with GoldSilver Central, if any. To unlock full features and enable purchase of precious metals via GSC Live!, you will need to fully onboard with us, look through and agree with GSC Live! terms and conditions.
Clients can try out the demo version of GSC Live! and it is absolutely free! With GSC Live!, clients are able to dollar cost average, time their purchase with a smaller trade size and then accumulate and take delivery of the precious metals of their desired weight. GSC Live! enables clients to transact at any time, at their convenience, execute the trade instantly and have the ability of taking physical delivery of what you have purchased.)
For more information, clients may refer to our website for more information.
Suzane
Trading and investing are two different methods of gaining profits from a market and both activities involves market participation at the right time. Traders take advantage of market volatility by entering and exiting market to take frequent profits while investors generally buy and hold assets or financial instruments over an extended period of time. Of course the reverse is possible too. Timing and convenience became an important factor in building wealth. What if you can have access to the market right in the palm of your hands?
GSC Live! is the mighty platform with endless possibilities that offers users access to the Precious Metals market anytime of the day. Apple and Android supported which means you are able to trade Gold, Silver and Platinum on your mobile phone. Here are 3 reasons why you should try GSC Live! today.
- Convenience: Its user-friendly interface makes it easy to understand and operate. And because you can download the application, you can check and execute trades while you are having a meal, shopping for groceries or even while you are travelling abroad. Other features include setting pending orders that helps you manage your trades while you are asleep. You can even leave buy or sell limit orders and GSC Live! will auto execute your trade when your desired price is reached.
- Instant execution: GSC Live! is ready for you to place your trades and they will be executed instantaneously. Not to worry about the latency of the data as all spot prices are in real time. You can buy or sell Gold, Silver or Platinum at the price you want.
- Spot Deliverable: You will be able to take physical delivery of what you have traded. We are the first Spot deliverable, physically backed Gold, Silver and Platinum in Singapore. Simply contact the GSC Live! team and we will provide the information on how to.
If you are still unsure, a demo version is available for you here. Follow the easy steps and you will have a tool to access the Precious Metals market. Download and try GSC Live! today for free!
