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Metals Trading

Precious metals trading? You are at the right place. A2Z Millennium give access to the global metals market via advanced trading platforms to traders around the world.

Trade Precious Metals with A2Z Millennium

 A2Z Millennium allows trading the spot price for metals including Gold or Silver against the US Dollar or Australian Dollar as a currency pair on 1:100 leverage.

Open a trading account with A2Z Millennium, and you will gain exposure to the available global market prices by trading Gold and Silver against the US Dollar along with the lowest spreads and trading fees.

What is Metals Trading?

Metals are an important commodity asset class, and metals trading is closely linked to the outlook for overall global markets. Commodities are broken up into two categories: soft commodities and hard commodities. Metals fall under the latter as they are typically a natural resource that is mined or extracted.

Precious metals including gold, silver and platinum are classified as bullion. Not only are they rare, but their historical use as a basis for money has also maintained their importance in global markets. Their inherent value means that they are used for portfolio diversification and to hedge against inflation.

Factors affecting precious metal prices include supply and demand, interest rates, economic uncertainty, and industrial output. Precious metals, particularly gold, are traditionally viewed as a safe haven by market participants in times of volatility.

Through careful analysis, traders predict the potential direction of metal prices and attempt to capture gains based on price fluctuations in the short-term or long-term. The market is open 24 hours a day, 5 days a week.

Open an A2Z Millennium Trading Account

Product Margin Per System Lot Average Spread Trading Hours & Timing = GMT + 2
XAUUSD
From 0.50%
20 Cent
Monday 01:00 – Friday 00:00 (Mon – Thurs Break: 00 :00- 01:00)
XAGUSD
From 1%
20 Cent
Monday 01:00 – Friday 00:00 (Mon – Thurs Break: 00 :00- 01:00)
Copper (future)
From 1%
20 Cent
Monday 01:00 – Friday 00:00 (Mon – Thurs Break: 00 :00- 01:00)

Factors Affecting Precious Metal Prices

Macroeconomic Variables

Data relating to interest rates and GDP affect a significant amount of metals. One of the reasons is because metals are seen as a safe-haven, and an alternative investment to the cash rate provided by financial institutions.

Inflation

Anything that dilutes the value of a currency helps the performance of metals. Quantitative easing, or the printing of additional money, causes a rise in inflation, with metal prices generally following suit.

Supply and Demand

Applicable across all products and services, the same also applies to precious metals. A shortage of metals or increased demand for their use can affect prices. Let's take industrial metals such as copper or aluminum. Technological advancement may create an alternative for their use and decrease their value.

Market Conditions

A2Z Millennium provides metals trading against many major currencies including the US dollar, similar to foreign exchange. Metals tend to be susceptible to the US dollar and have historically traded in the opposite direction to the greenback. This is why they are often used as part of a hedging strategy in times of economic uncertainty.

Benefits of Trading Precious Metals

Metals : As you do not have to own the underlying asset when trading CFDs, there are fewer costs associated with investing in metals this way. There is no need to store the asset and traders can benefit from both rising and falling prices. The prices are comparable to those found on the London Metal Exchange (LME), the world’s largest market for ETFs on base metals and other metals.

Portfolio Diversification: With limited correlation to other financial instruments such as stocks and bonds, trading precious metals is a useful way to diversify your portfolio.

Hedging: Precious metals are often used as part of a risk management strategy. Investors often trade metals to hedge against inflation and currency fluctuations.

Safe-Haven: During times of economic uncertainty, the value of precious metals tends to rise. This has historically been the case during economic slumps and key political events, including major elections.

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