How to start Your Gold Trading This Lohri

13 Jan 2023|

1 min read |

by ICICI Securities Team

Introduction

Indians consider gold to be one of the best investments to make. And they’re right! Gold is an excellent hedge against inflation, is inversely related to the price of other assets, and has historically proven to be a wise investment. With the auspicious festival of Lohri, Pongal or Bihu, as you may like to call it, around the corner, it’s a great time to start gold trading this Lohri.

Why Start Gold Trading This Lohri?

Investing in physical gold has a number of downsides—you can lose money in taxes and need to store the yellow metal safely and ensure its security. What if you could reap the benefits of gold in your portfolio without bearing these risks?

Gold trading is a great way to include gold in your portfolio without the added risks of storing gold. Electronic trading of gold, be it in the form of gold mutual funds, gold ETFs or gold options and futures, can give you better returns. What better time to start this practice than to begin gold trading on Lohri?

How to Start Gold Trading This Lohri

1. Understand MCX

Commodity trading in India is done on the Multi Commodity Exchange of India or MCX. When you want to start trading in gold ETFs or options, you have to go through the MCX. Before you embark on gold trading this Lohri, understand how the MCX works.

2. Open an Account

You will need a demat and trading account to trade in gold commodities. Find a good broker with whom you can start trading gold. ICICIdirect provides you with some of the best features you would want in a trading account.

3. Choose the Right Product

Decide whether you want to trade ETFs, options or futures. You can find different ETFs and derivatives on the MCX. After choosing the product you want to start with, you can begin online gold trading this Lohri.

4. Monitor the Market

Gold trading involves keeping an eye on the market and gold prices. Once you begin gold trading on Lohri, be sure to monitor the prices so that you are in the green.

Ways to Trade Gold

Understand the different factors that move gold prices. Inflation, demand, supply, and geopolitical factors are some of the things that affect gold prices.
Market conditions also impact gold prices. For instance, during a bearish market, gold prices will go up because gold is considered a safe haven instrument.
Just like stock traders use technical indicators to monitor stock price movement, you should use technical indicators to track gold prices when you trade.
Also, track the production and supply of gold to understand price fluctuations.

Conclusion

Gold is an excellent investment option. If you want to do gold trading this Lohri, follow our advice for a fruitful trading journey.

Disclaimer

ICICI Securities Limited has its registered office at ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400025, India, Tel No:- 022 - 2288 2460, 022 - 2288 2470. The non-broking products / services like iLearn and Financial Learning are not exchange traded products / services and ICICI Securities Ltd. is just acting as a distributor/ referral Agent of such products / services and all disputes with respect to the distribution activity would not have access to Exchange investor redressal or Arbitration mechanism. iLearn is not an exchange traded product/service of ICICI Securities Ltd. All disputes with respect to the activity on the platform would not have access to Exchange investor redressal or Arbitration mechanism.

ICICI Securities Ltd. is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. (Member Code: 56250) and having SEBI registration no. INZ000183631. ICICI Securities Ltd. is a SEBI registered with SEBI as a Research Analyst vide registration no. INH000000990. Name of the Compliance officer (broking): Mr. Atul Agrawal, Contact number: 022-69997051, E-mail address: complianceofficer@icicisecurities.com Investments in securities markets are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. ICICI Securities Ltd. and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Such representations are not indicative of future results. The securities quoted are exemplary and are not recommendatory. AMFI Regn. No.: ARN-0845. PFRDA registration numbers: POP no -05092018. ICICI Securities Ltd. acts as a Composite Corporate agent having registration number -CA0113. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Please note, Mutual Fund, Corporate Fixed Deposits, Bonds, Alternate investment funds, Tax planning, Succession planning, NPS, IPO, Investment Advisory and Loans related services are not Exchange traded products and ICICI Securities Ltd. is acting as a distributor to solicit these products. Please note, Insurance related services are not Exchange traded products and ICICI Securities Ltd. is acting as a corporate agent to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The non-broking products / services like Research, etc. are not exchange traded products / services and all disputes with respect to such activities would not have access to Exchange investor redressal or Arbitration mechanism. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose.

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