Gold is priced mostly in U.S. Dollars, but until 1976, the value of the U.S. Dollar was based fully or partially upon the value of Gold: the U.S. Dollar was pegged to Gold.

This means that Gold trading as we know it has only really been going since 1976. Many traders get emotional about Gold.

It is a natural human emotion to get excited about this shiny and very expensive precious metal which we are used to seeing in expensive jewelry, but traders should view Gold just as a commodity like any other.

Traders must think about the price fluctuations, not the asset itself, to make good trading decisions.

The best reason to trade Gold is that its price tends to fluctuate with greater volatility and force than traditional Forex currency pairs such as EUR/USD.

The price of Gold has sometimes risen by 100% within only a few months.

Even though the cost of trading Gold in terms of spread and commission is proportionately greater than it is in Forex pairs, this movement tends to make it more rewarding in terms of profit.