When Should We Buy Gold?
The Impact of the Dollar Exchange Rate on Gold Prices:
The Impact of the Dollar Exchange Rate on Gold Prices
Since gold prices are influenced by the exchange rate of the dollar, and considering that the dollar price is determined around 11 AM daily, it is advisable to conduct gold transactions during the trading hours (from 11 AM to 8 PM). During this time frame, prices are more stable and accurate, allowing gold sellers to offer better prices with lower fluctuations.
To ensure the right time for purchase, you can monitor the real-time price of melted gold for several consecutive days at different times (morning and evening) on reliable trading websites like Goldika. This approach will help you make an informed decision when buying.
If your goal is long-term investment, gold has consistently proven to be a valuable asset over time. However, if you aim for short-term trading or price speculation, it is essential to familiarize yourself with various price analysis methods, such as technical analysis and fundamental analysis.
What Should You Consider When Buying Gold?
Some experienced traditional gold sellers have developed strong economic intuition through years of market experience. They can potentially help you predict price trends and determine the right time to buy gold.
Step-by-Step Buying Strategy
One of the strategies investors use when they recognize the growth potential of an asset but are uncertain about its short-term performance is step-by-step buying (also known as dollar-cost averaging).
You can apply this method when buying gold by dividing your capital into different portions and making purchases at various times. You don’t need a large investment to implement this strategy—platforms like Goldika allow you to save gold gradually with any amount of capital.
Investment Management Principles
- Avoid impulsive purchases during high market volatility.
- Invest surplus funds with a long-term perspective.
- Make gradual purchases during stable market conditions.
Diversify Your Investment Portfolio
To reduce investment risk, always aim to create a diversified portfolio rather than investing all your capital into a single asset. Even if you are highly confident in an asset’s growth, avoid investing all your money in one market. It’s wise to keep a portion of your capital in liquid form.
Make Informed Investment Decisions
Never invest based solely on others’ analyses and opinions without prior knowledge. Always enhance your understanding of different markets before entering them.
If you are considering investing in gold, continue reading to learn about the key factors that influence gold prices.
How Often Should We Buy Gold?
Monthly gold price fluctuations are more trackable and safer compared to shorter time frames. This makes it easier to determine the right time to buy gold. Therefore, it is recommended to make purchases on a monthly basis, according to your budget.
It is best to analyze gold price trends each month and wait 2 to 3 days after the price begins to decline before making a purchase.
According to chart analysis, gold prices increase by an average of 35% annually compared to the previous year. Sudden price fluctuations are usually temporary and tend to stabilize after a short period.
Overcoming fear of sudden market fluctuations and controlling emotional reactions will help you decide when to buy or sell gold wisely.
What Factors Influence the Price of Gold?
If you’re someone who constantly checks the live price of gold, gold bars, coins, etc., it’s important to be familiar with the factors that influence the price of this precious metal. Specifically, the price of gold domestically is a function of the global gold price and the price of the dollar. Any factor that affects either of these two will also impact the price of gold.
What is the Best Time to Trade Gold and Which Trading Sessions Are Ideal?
The first step in determining when the best time to trade gold is for you is to understand the trading sessions. As you may know, there are 5 main trading sessions in the forex market:
- Sydney Session: Starts at 00:30 AM and ends at 08:30 AM.
- Tokyo Session: Starts at 02:30 AM and ends at 10:30 AM.
- Frankfurt Session: Starts at 10:30 AM and ends at 06:30 PM.
- London Session: Starts at 11:30 AM and ends at 07:30 PM.
- New York Session: Starts at 04:30 PM and ends at 00:30 AM.
Therefore, you should know which session is active and which one is closed at any given time.
Next, traders need to know which session experiences the most volatility in gold so that they can choose the best time based on the type of session and market volatility.
One of the most volatile sessions is the New York session, which starts at 04:30 PM Iran time and ends at 00:30 AM. Traders can execute good trades in gold during this session as trading volume is very high, and the spread is relatively low.
Another suitable session for trading gold is the London session, which starts at 10:30 AM Iran time. This session also has good volatility, and it can be a good choice for trading gold.
However, keep in mind that during the late-night hours, when the New York session ends (between 11:30 PM to 00:30 AM), the risk of trading is very high because trading volume is low and spreads are at their highest. Therefore, always try to close your positions before this time.
What Are the Best Days of the Week to Trade Gold?
Typically, the best days of the week to buy gold are between Tuesday and Thursday. On the first trading day, Monday, the market may be confused and lack a clear direction. However, by Tuesday, most traders have made their trading decisions, and the market usually has a clear direction.
On the last trading day, Friday, many traders exit the market to lock in their profits or close their positions.
As a result, traders may face many challenges on Fridays. It is recommended to focus your main trading activity on gold between Tuesday and Thursday. However, in general, you can trade gold in the Forex market from Monday to Friday.
Factors Affecting the Best Time to Buy Gold and Coins:
While buying gold may seem risky when prices are high, waiting for a significant decrease could lead to a missed opportunity. Therefore, we recommend buying gold whenever you can, regardless of what is happening in the market.
On the other hand, the price of gold is influenced by factors such as supply and demand, inflation, interest rates, the strength of the dollar, as well as international conflicts and political events.
Economic and global conditions are always fluctuating, making it challenging to predict future gold prices. Therefore, it is important to consider current economic indicators and global events and understand that these factors can change quickly. Below, we highlight two main factors in determining the best time to buy gold and coins.
1. Inflation Rate and Interest Rates
The price of gold fluctuates with changes in interest rates. Higher interest rates are typically associated with a stronger dollar and a decrease in gold prices. On the other hand, a reduction in interest rates can lead to an increase in gold prices. However, the inflation rate also plays an important role in the price of gold.
Gold usually performs well during periods of high inflation. If inflation decreases, the demand for gold may decrease, potentially balancing out any price increases caused by lower interest rates.
2. Economic and Political Conditions
The price of gold often moves inversely to the stock market. When the stock market rises, the price of gold tends to decrease, and vice versa. However, the price of gold can change under certain conditions. International conflicts and political uncertainties also drive up the price of gold as investors seek a safe haven for their investments.
For example, the conflict between Israel and Hamas led to a record high in gold prices at the end of 2023.
Gold Price Announcement Time in Iran:
Anyone who intends to invest in the gold and coin market likely checks the prices of various types of gold every day. From the price of a quarter coin to the daily rate of 18-karat gold, these are common searches for these individuals. If you are one of them, you might be asking yourself, “What time is the gold price announced in Iran?”
In response to this question, it should be noted that according to an old tradition, gold prices in Iran are announced at 11:00 AM. In fact, the trading of gold in Tehran and other cities in Iran begins around 11:00 AM, and many sellers start their transactions with the prices set at this time.
Now, it’s possible that you wake up early and see that the gold price in Iran has been announced before 11:00 AM on news channels. In such cases, you should not trust these prices because they are likely not accurate. This is why it is advised never to buy physical gold in the domestic market in Iran before 11:00 AM.
24/7 Gold Trading at Zahra Jewelry:
Zahra Jewelry’s platform, as the largest online gold trading center in Iran, provides a secure space for investors to buy or sell gold at any hour of the day or night. This eliminates the time constraints of traditional markets, allowing you to make decisions about your financial future instantly.
Various platforms have been created for gold trading, and you might be wondering why you should carry out your transactions at Zahra Jewelry?
Real-time Prices: Zahra Jewelry is connected to global markets and reliable sources, and all prices are calculated transparently and in real-time.
Outstanding Security: Zahra Jewelry operates one of the most advanced trading systems in Iran, ensuring high levels of security.
Simple and User-Friendly: You can join Zahra Jewelry in just a few minutes and easily buy or sell your first piece of gold.
24/7 Support: Zahra Jewelry’s support team is available 24/7, 7 days a week, to answer any questions you might have.
Physical Gold Withdrawal: Whenever you want, you can convert your gold holdings into physical gold, such as gold bars, and have them delivered to you.
Licensed: Zahra Jewelry has obtained all necessary licenses, including a business license from the Gold and Jewelry Union and an electronic trust symbol.
Gift Option: Instead of giving physical coins, you can gift any amount of gold to your friends and family using the Zahra Jewelry gift card.
Minimum Purchase Price: Zahra Jewelry allows you to buy gold starting from just 100,000 IRR. This way, you can gradually increase your gold holdings over time.
Therefore, if you are looking for an easy and secure way to invest in the gold market, Zahra Jewelry is the perfect platform for you. We recommend that you join us now and not miss out on the remarkable growth of gold.
Conclusion: When to Buy Gold
When is the best time to buy gold? After examining the factors influencing gold prices, it can be concluded that the best time to buy gold is when prices are more stable and experience fewer fluctuations. Therefore, late hours of the day, weekends, and the first six months of the year, due to lower volatility, could be good times to buy gold.
Additionally, by using tools like technical analysis and considering the impact of various factors on gold prices, we can more accurately determine the best time to buy. Assessing these factors when buying gold helps us enter the market with greater confidence and benefit from our investment.
