In the Forex market, precious metals include gold, silver, and platinum. Gold is the most attractive and the most traded one. However, other metals, especially silver, have shown that they can be very volatile, providing numerous trading opportunities. Platinum, though less traded than gold and silver, is highly valued for its industrial uses and scarcity, making it another viable option for traders.

Including precious metals in your portfolio may diversify it and increase its long-term profitability.

Certain factors make trading precious metals, especially gold, very attractive. The main one is the fundamental predictability of gold prices based on their inverse relation to global economic trends.

Investors seek refuge in gold if things go wrong, causing its price to rise. Conversely, if the global economy is booming and optimistic moods push traders to take more risks, gold prices typically decrease. For example, the Covid crisis in 2020 made gold reach all-time highs above $2000. However, when the economy stabilized, gold did not reach the same heights in price.

Precious metals are considered safe-haven assets, a hedge against inflation, and portfolio diversifiers. Also, Gold and silver prices usually correlate – if the gold price rises, so does the silver price.

With a higher level of liquidity, they provide many beneficial trading opportunities, especially during economic uncertainty.

Our leverage ratios for trading precious metals are fixed to optimize returns and ensure risk control. Note that the leverage for metals is distinct from the leverage set in your Trader Area, which applies exclusively to Forex and Forex Exotic instruments.

At FBS, the leverage is fixed at 1:500 for all metals, offering improved opportunities for short-term positions without compromising risk management.