Key Times for Gold Trading:
Highest Volatility: When the European and US sessions overlap. News related to interest rates or the USD often directly impacts gold prices.
1. Important Considerations for News-Based Trading
Analyze the News
Key Economic Events to Monitor:
Economic reports: GDP, CPI (inflation), unemployment rates, and central bank interest rate decisions.
Central bank meetings (e.g., FED, ECB, BOE).
Speeches by central bank leaders (e.g., Federal Reserve Chair).
Geopolitical news (wars, natural disasters, political instability).
Trading Strategy:
Before News Release:
Avoid placing large trades right before news announcements due to potential high volatility.
Use stop-loss orders or smaller trade sizes to manage risk.
During News Release:
Market fluctuations can lead to slippage (price gaps).
Be cautious with mixed news (e.g., one positive indicator and another negative).
Trade only if you fully understand the news and its impact.
After News Release:
Monitor price actions as markets often adjust after the initial spike caused by the news.
Risk Management:
Use tight stop-loss levels.
Avoid using high leverage.
Refrain from trading during low liquidity periods.
2. Key Timeframes to Monitor
Major Trading Sessions:
Asian Session (Tokyo)
European Session (London)
American Session (New York)
Critical News Times:
Tuesday – Friday:
Economic reports (e.g., US data)
European data
Monthly News Releases:
US Nonfarm Payrolls (NFP): Usually released on the first Friday of the month.
Federal Reserve Interest Rate Decisions (FOMC): Typically scheduled for the second or third Wednesday of the month.
CPI (Inflation Data): Released mid-month.
Key Times for Gold Trading:
Highest Volatility: When the European and US sessions.
News related to interest rates or the USD often directly impacts gold prices.
3. Tools to Track News
Economic Calendars: Monitor key events on platforms like:
Forex Factory.
Investing.com.
TradingView.
News Alerts: Use platforms like MT4/MT5 or broker-specific apps to receive real-time news updates.