Gold is a long-standing commodity and currency, and even today, after its financial role has diminished, it attracts traders and financiers alike. Gold is a material asset that can be used for a variety of purposes. That’s why it holds steady positions in forex markets. The trading pair is XAU/USD, so wherever you see this name, you can buy and sell it – and make profits. Definitely, there are historical highs and lows of gold popularity, but today, as international currencies go through rough times frequently, the interest in gold grows.
For Indian traders, it’s also an important local commodity that is constantly in high demand but available through import only. Recently (in the last couple of years), there has been a stream of news of the possible expansion of gold mining in India due to the discovery of new deposits and the idea to create a dedicated gold exchange, so the gold market got agitated. That’s why interest in forex gold trading in India is all the more natural now. So if you need a briefing on the best time to start the trade to make money, read on and take note of our trading tips.
The Best Time to Trade Gold Metal for Indian Traders
Basically, whenever you have some money to invest, some knowledge to make use of, and some optimism, you can trade gold. Markets are operating 5 days a week, all round the clock, so the best time to trade gold forex in India is when you have resources for it.
Yet if we apply some reasoning and look at how the markets work globally, we’ll get a clearer picture. For example, if you ask when the best time to trade US30 in India is, the time will be limited to the operating hours of the New York Stock Exchange. So you can trade this asset only between 9:30 a.m. and 4:30 p.m. EST (7 p.m. to 2 a.m. India Standard Time).
The same answer can be given to the question of when the best time to trade in India is. The optimal time brackets for trading are when big players like New York or London operate, and the juiciest moments are when these markets overlap, boosting prices, liquidity and opportunities.
Since the operation time of big exchanges is usually stated in the EST standard, it's necessary to remember that India is 9:5 hours ahead of EST. So, to catch the wave and make profits, if you live in India, you have to start trading in the evening and go deep into the night, rolling into the beginning of the next day. So, you’ll end the trading session, say, on Saturday, while in New York, it will still be Friday.
Technical Analysis At Work: the Best Time to Trade Gold in India Based Upon Volume and Activity Levels
Let us recap on the alphabet of trading, so to say, and recollect the principle of the forex 3-session system. The three biggest market players are scattered across the globe, and they are Tokyo, London, and New York. Due to time differences, they open and close sessions at different time points. So, there is the Asian or Tokyo trading session (5:30 a.m. to 2:30 p.m. India time), European or London trading session (1:30 p.m. to 10:30 p.m. India time), and North American or New York session (6:30 p.m. to 3:30 a.m. India time). Sessions also overlap for a couple of hours, providing additional opportunities and volumes of liquidity.
You can trade gold during any of these sessions since they attract hordes of eager traders around the world, and liquidity is very high. Yet mind the following: India is a very big gold consumer, second only to China in absolute numbers globally. The USA is a major player impacting gold price fluctuation in XAU/USD trading across the world. If you want to take advantage of these two facts in your trading, plan your work so that you catch Indian and New York trading sessions.
Start trading at 9:15 a.m. India Standard Time, when local Indian markets are buzzing and important information from the government and regulating bodies is impacting the trades. The Indian trading sessions end at 3:30 p.m. local time. You can take a break, and then from 6:30 p.m. to 10:30 p.m. India time, when the US/London overlap happens, take advantage of the surge, high price volatility, and doubled and tripled volumes that rock the international trading community.
European and the U.S. Market Overlap As Trading Time
As we’ve said, the best time to trade gold forex in India is when the market is booming, and prices fluctuate significantly, getting very high or low, depending on your trading strategy. Mind that all mentioned time points are provided in Eastern Standard Time, or EST, and matched to the Indian timezone.
European and the USA forex overlap is also dabbed US/London overlap. It lasts from 9 a.m. to 1 p.m. EST, which is from 6:30 p.m. to 10:30 p.m. India time. If you need to choose a single time point (or span) to trade gold, choose this overlapping window since the USA is the most important gold trader and London is the global leader in currency trading. So when two stars collide, fortunes can be made.
In more technical language, around 70% of all daily trades happen during this trading window. So don’t miss it. Big global breaking news announcements impacting the gold trades are also often released during this trading session.
Gold Trade and Local Indian Markets Schedules
Fortunately, India as a continent is located in a single time zone. So, if you want to benefit from activities of the major Indian stock exchanges, like the BSE (Bombay Stock Exchange) and the NSE (National Stock Exchange), you don’t have to account for time differences.
Since India is the second biggest acquirer of physical gold worldwide, major national decisions impacting gold trade will most probably impact global markets, launching waves of price fluctuations in forex trade. It is reasonable to believe that in connection with the recent governmental proposal to create a dedicated gold exchange and introduce 'Electronic Gold Receipts', the series of important gold-related news will be hitting the Indian markets regularly. You need to be present in the local markets when the breaking news flashes through since it will send ripples across the global gold trade. You will witness the initial price push with your own eyes and will be able to benefit from it before traders around the globe catch the wave.
Besides, while following the schedule of Indian markets, you catch the beginning of the European trading session (1.30 p.m. India time), thus tapping into pools of increased liquidity.
Asian and European Market Overlap Significance
Tokyo and London trading sessions overlap for one hour only, from 4 a.m. to 5 a.m. EST (1:30 p.m. to 2:30 p.m. India time). American traders are fast asleep at this moment, so the movement of the market is not that agitated. It’s the least active overlapping point, but if you start trading at 9:15 a.m. India time, you can benefit from it no matter what.
The Best Days to Trade Gold in India and Days To Chill Out
Now that we’ve established the best time to trade gold forex EST in India let’s look at the calendar. Technically, you can trade in the forex market 5 days a week, except weekends, all year round. There is no formal stop for nighttime or lunch because, obviously, these time spans do not overlap in different countries.
But what about big holidays? Do they matter? Well, if it’s a national holiday, offices and shops will be closed, and business will stop for a day. So it’s necessary to take note of key holidays in the countries that make a major forex impact. The complete lull on the markets happens on Christmas and the 1st of January (the New Year’s Day) that are celebrated all around the globe. All markets will be still, so you can join in the celebrations, too.
The USA
In the USA, Independence Day, Labor Day, and Thanksgiving are public holidays when people do not go to work, so you won’t tap into the USA/London overlap hours on these dates (they are floating except for the 4th of July, the Independence Day).
The UK
In Great Britain, key holidays alongside the mentioned Christmas and New Year will be Good Friday, two Bank Holidays, and Boxing Day. Businesses do not operate, neither do foreign exchanges. So again, no overlapping hours of the USA/London and London/Tokyo will be available on these dates.
Japan
Japan has its own important holidays, like the Emperor’s Birthday, the Golden Week, and Coming of Age Day. On these dates, the Tokyo exchange is quiet, so there are no overlapping hours with the Asian forex session.
Hence, when you plan your trading schedule in India, account for days off in the countries that are major forex players. And yes, although it’s a big holiday, do find time and make that special Muhurat trading on Deepavali Day and invite luck and prosperity into your life and forex trading!
Our Final Words and Tip
Now that you know the basics of when and how to trade gold forex in India, you may feel tempted to jump into the trades headlong. Don’t do it just now. Get a grip of the process by setting up the demo account with a trusted broker, like JustMarkets, learn to ride the waves and do the timing, and then toss a coin into the sea and get a trunk of treasures carried to you by the tide. We value your time and money and want you to make the most of trading gold – or any other reliable asset.
by , 2023.04.24