Craving More Forex Gold Symbol?

The ‘gold standard’ is a monetary system under which the values are defined as a determined weight in gold. The institutions issuing the money guarantee the support of the bills of that total in gold under this standard. In the past, the same was used to commercialize commodities and trade in other currencies. Those who defend this system argue it is more resistant to the extension of credit and debt, since the money backed by gold cannot be created arbitrarily by the governments. This would prevent artificial inflation due to the depreciation of a currency. It supposedly eliminates the uncertainty of such currency.

But the gold standard began to demonstrate its weaknesses when an economy strengthened, and increased importing foreign services and goods. This would empty out the gold reserves necessary for backing currency, reducing the monetary mass, followed by an increase in interest rates, and a slowed down economic activity leading up to a recession. Then, the low price on the merchandise would generate a massive buy from foreign countries, reverting the process. The oscillating patterns of peak and fall maintained until the bursting of the First World War interrupted the market flow and the free flow of gold.

On another note…

In the spot gold trading, the symbol which represents gold against the U.S dollar is XAUUSD and XAU stands for one troy ounce of gold. Here’s an illustration, the gold spot market quote can be something like 1200 XAUUSD. This means that one troy ounce of gold is equal to $1200 USD.

It’s a summary of what’s really been driving markets and is likely to continue to do so in the coming week and beyond. In particular we focus on the key things to watch this week, the durability of the current rally in stocks, other risk assets, the US dollar. In a nutshell, last week showed yet again how the entrenched technical momentum has changed how markets respond to fundamental data: buying on good news days, minimal selloffs on bad news days, …


In the Exchange Market, some investors also purchase and sell gold due to speculations, trying to make profit from the small fluctuations in prices. Nonetheless, the price of gold is very unpredictable, since it is used primarily as a purchasing power reserve, and it is consequently subject to many monetary and psychological factors. Investing short term to make more profit than with other types of investments can be quite risky.

Since it is used as a reserve, the price of gold is closely related to how other alternative investments behave, how the currencies, bonds and stocks are. The price of gold tends to rise when in the midst of monetary instability and the collapse of capital markets. Also events such as wars and natural disasters influence on the price. The price of gold has been increasing due to a weak dollar and the unstable stock market situation. Nonetheless, its real price, adjusted by inflation, is today much less than it was already in the early 80′s. Either way the current trend is found in the rise, since during the last five years the nominal price of gold rose from US$330 an ounce in April of 2003 to US$900 in early April of 2008.

Since it is used as a reserve, the price of gold is closely related to how other alternative investments behave, how the currencies, bonds and stocks are. The price of gold tends to rise when in the midst of monetary instability and the collapse of capital markets. Also events such as wars and natural disasters influence on the price. The price of gold has been increasing due to a weak dollar and the unstable stock market situation. Nonetheless, its real price, adjusted by inflation, is today much less than it was already in the early 80′s. Either way the current trend is found in the rise, since during the last five years the nominal price of gold rose from US$330 an ounce in April of 2003 to US$900 in early April of 2008.

The rising prices of gold can affect other currencies, specially those countries with the greater preparation of this metal. For example, Australia is the third highest exporter of gold, and Canada is the third major producer. Therefore, we may speculate with transactions in Australian or Canadian dollars waiting to become stronger as the price of gold rises.

Gold is seen as a wealth reserve. Gold has demonstrated to improve its value during periods of crisis or war, when alternative investments tend to fall.

Currently, gold reserves are limited. This influences positively on its price, since it must rise when it’s a limited resource.

It is an easy investment. It is a currency accepted globally and it doesn’t present many difficulties to exchange, nor exaggerated taxes.

It allows various forms of investments. Bricks, future, options on gold, and deposit certificates, investment funds.

Gold is considered the best investment in periods of crisis. Gold is considered a good liquid asset and its value always increases during these times..