How to start Your Gold Trading This Lohri

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

1. Understand the different factors that move gold prices. Inflation, demand, supply, and geopolitical factors are some of the things that affect gold prices.
2. 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.
3. Just like stock traders use technical indicators to monitor stock price movement, you should use technical indicators to track gold prices when you trade.
4. 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.