What factors should I consider when trading metals CFDs?

Some of the factors to consider prior to investing in precious metals include the current geopolitical situation, that state of the US dollar, the position of central banks and inflation rates. To get a better understanding of this asset class, read our guide on Investing In Precious Metals.

Metals trading

Q: What are the most traded metals?

With respect to Metals CFDs, Gold is the most traded commodity. Platinum, palladium and silver are among the other most traded metals. They can all be traded with FP Markets. Find out more about Investment Strategies For Metals.

Trade precious metals such as Gold, Silver, and Copper with low spreads and fast execution.

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Trade Metals with FP Markets

Trade precious metals such as Gold, Silver, Copper against the US dollar, the euro and the British pound.

Diversify your strategy by trading a wide range of Metals with a globally regulated and award-winning broker.

Click here for our full list of Metals & typical spreads

Why trade Metals with us?

Diversify your investment portfolio by trading Metals
Go long or go short and maximise trading opportunities without owning physical metals
Take advantage of leverage by opening larger positions with less capital
Hedge your investment risks with high value assets, like gold and silver
Benefit from low margin, low-cost trading, without compromising execution
Access a wide range of educational resources and trading tools to hone your trading skills

What is the best platform to trade Metals?

MetaTrader 4: the world’s most popular platform.

Discover the benefits of trading Metals on some of the most powerful trading platforms available such as the MetaTrader 4 (MT4), the MetaTrader 5 (MT5), TradingView and cTrader. Accessible on both desktop and mobile platforms, the MT4/MT5 and cTrader platforms can change your trading perspective.

Spreads from 0.0 pips & leverage up to 500:1 on Raw accounts
Customisable interface, including colours of technical indicators
One-click trading
MarketWatch
Live price streaming on Live and Demo accounts
128-bit SSL encryption for secure trading
Expert Advisors (EAs)
Customisable alerts
Compatible with iOS, Android and Mac devices

Are there more platform options?

We recommend MT4 but Metals can also be traded on MT5 and cTrader.

6 reasons to choose FP Markets

Reliable & regulated

Licensed across multiple jurisdictions, ensuring transparency and security.

Cost-effective trading

Spreads as low as 0.0 pips, fast execution, and transparency.

Market expertise

Trade smarter with in-depth, real-time analysis from our research team.

Multilingual support

A dedicated multilingual Customer Support team available in your preferred language.

Intuitive platforms

Trade with confidence on industry-leading platforms available across all devices.

Portfolio diversity

10,000+ CFDs across Forex, Shares, Indices, Commodities, Bonds, ETFs, and Digital Currencies.

What is Metals trading?

Metals, part of Commodities, are some of the most popular asset classes that you can trade in financial markets. Gold, silver, copper and other metals are considered safe haven assets by both investors and traders.

Gold continues to be a great way to diversify an investment portfolio, since traders tend to open gold positions when markets experience a downturn. Geopolitical tensions also tend to boost the demand for gold, whether short-term or long-term. Other factors that can impact the prices of precious metals such as gold, silver, copper, etc., are supply/demand and major bank monetary policy adjustments, including interest rate decisions.

Trading Metal CFDs enables you to access the metals market and benefit from their price movements, without owning the underlying assets thus freeing you from any ownership obligations. By opening an FP Markets trading account, you can trade gold, silver, copper, and others using advanced trading platforms and tools. FP Markets gives traders access to the latest financial insights and technical analysis prepared by experienced analysts to help you prepare your strategy against potential market adversity. The Metals market is open 24 hours a day, five days a week.

Metals trading example

Suppose you want to trade CFDs, where the underlying asset is the XAU/USD also known as Gold vs US dollar pair. The XAU/USD is trading at: Bid Price: 1700.64 / Ask Price: 1701.19.

You decide to buy 100 oz of XAU/USD (1 lot of XAU/USD) because you think that the XAU/USD price will rise in the future

Your margin rate is 0.2% (Account leverage: 1:500). This means that you need to deposit 0.2% of the total position value into your margin account.

If the price moves to 1793/1793.1 in the next hour, you have a winning trade. You could close your position by selling at the current price of 1793 USD. In this case, the price of gold moved in your favor.

However, had the price declined instead, moving against your prediction, you could have made a loss. This continuous evaluation of price movements and resultant profit/loss happens daily.

Accordingly, it leads to a net return (positive/negative) on your initial margin. In the loss scenario where your free equity, (account balance+ Profit/Loss) falls below the margin requirements (358.4), the broker will issue a margin call.

If you fail to deposit the money, and the market moves further against you, when your free equity reaches the 50% of your initial margin the contract will be closed at the current market price, known as ‘stop out’.

Metal spreads

SEARCH BY SYMBOL

Symbol	Product	Standard A/c	Raw ECN A/c
Symbol	Product	Standard A/c	Min	Avg
XAGAUD	Silver vs Australian Dollar	24.74	0	1.47
XAGEUR	Silver vs Euro	17.23	0.004	1.12
XAGUSD	Silver vs US Dollar	21.72	0.004	1.57
XAUAUD	Gold vs Australian Dollar	526.58	0.06	42.65
XAUEUR	Gold vs Euro	39.59	0.08	21.59
XAUUSD	Gold vs US Dollar	20.93	0.04	6.96
XPDUSD	Palladium vs US Dollar	1,053.81	-	-
XPTUSD	Platinum vs US Dollar	620.35	-	-
XPBUSD	Lead vs US Dollar	371.62	2.3	3.58
XZNUSD	Zinc vs US Dollar	343.04	2.42	3.29
XNIUSD	Nickel vs US Dollar	2,346.44	14.44	23.32
XALUSD	Aluminum vs US Dollar	356.22	2.15	3.42
XCUUSD	Copper vs US Dollar	534.74	3.1	5.21
XAUGBP	Gold vs Great Britain Pound	32.63	0.06	0.21
XAUSGD	Gold vs Singapore Dollar	55.71	0.04	0.37
XAGSGD	Silver vs Singapore Dollar	2.21	0.004	0.02
XAUCNH	Gold vs Chinese Renminbi	268.62	0.08	1.67

Why trade precious Metals with FP Markets?

Precious metals are among the Top Commodities to trade. Metals are classified as a hard commodity as they are mined from the earth or extracted from natural resources. Through Contracts For Difference (CFDs), you can gain exposure to metals markets in a unique way that provides a wide range of advantages.

Margin trading

As CFDs are a leveraged product, you can open large positions by depositing only the margin required. As metals such as gold have high levels of liquidity, commodity trading offers higher levels of leverage than many other tradable instruments.

Go 'Long' or 'Short'

By trading Metal CFDs, going 'long' or 'short' you can speculate in both rising and falling prices. The ability to open short positions and benefit from falling prices is another aspect of CFD trading and one that may create additional trading opportunities.

Risk management

Advanced trading platforms such as MetaTrader 4, MetaTrader 5, cTrader and TradingView offer cutting edge risk management tools. Their features include a large range of charting tools but also a multitude of order types and alerts to ensure that you are made aware of any changes to market conditions.

Factors affecting precious metals’ prices

Supply and demand
Supply and demand are among the factors that may influence the prices of metals in the market. A shortage of a certain metal could raise its prices, while increased supply could cause values to drop. Technological advancements can also boost the demand for a specific metal.

Financial data releases
Financial reports related to Consumer Price Index (CPI) inflation, Gross Domestic Product (GDP) growth rate and interest rate decisions can impact metals’ prices. Economic data releases coming from the US tend to shape gold prices, so traders should stay up to date.

Monetary policies
Monetary policy decisions by the boards of major central banks can affect precious metal prices. Traders should give special attention to the US Federal Reserve (Fed) interest rate decisions which tend to influence gold prices.

Geopolitical tensions
Geopolitical tensions, such as wars, low intensity conflicts, government changes or political crises, can play a role in shaping precious metals’ prices. Market uncertainty deriving from such events leads investors and traders to buy safe-haven assets like gold.

Metals trading - FAQs

What are the most traded metals?

According to market data, gold is the most traded metal. Silver, copper, platinum and palladium are also among the most popular traded commodities. A trading account with FP Markets ensures traders get the right tools and trading conditions to navigate metals markets. Find out more about investment strategies for Metals.

Why are precious metals valuable?

As indicated by their name, precious metals are indeed that. They are rare, which prevents the prospect of excessive supply, and have an infinite lifespan as they do not rust. The fact that they are measured in troy ounces makes it easy to compare their value.

The history of metals dates back thousands of years. Apart from being a medium of trade and exchange, precious metals have been considered as a long-term store of value for an extended period of time.

Precious metals are highly valued due to increased demand and low supply. Some of them, like gold for example, have an infinite lifespan making them the right value storage tool for an extended period of time.

Precious and rare earth metals have been vital components of economic activity for thousands of years. New ways to use metals are closely associated with technological advancements such as space exploration, EV batteries, etc.

What factors should I consider when trading Metal CFDs?

Before trading metal CFDs, traders should consider several key factors that may influence metal prices. Reports regarding CPI inflation, GDP growth, especially the ones related to the US economy, as well as major bank monetary policy decisions can significantly impact precious metal prices. To get a better understanding of this asset class, read our guide on investing in precious Metals.