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  If you’re looking for a safe haven that’ll protect your wealth in these times, you should consider investing in gold. And if you’d rather actively skim off profits every now and then, you can trade gold every day. Whichever strategy you choose, it could save your money from losing value, and even yield you handsome returns.
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Here’s one reason why you ought to think about investing in gold: just this year, the naira value of this precious metal has shot up by more than 100%. That’s better than most assets have managed. In this article, we’ll try to answer an often asked question in these parts: when is the best time to trade gold? We will begin by telling you when gold trading happens daily.

The Global Market

There’s almost no end to gold trading for people who have access to the global markets. By ‘markets’ we mean the formal commodities trading arenas located across the world. There are basically three trading sessions, representing the times in which the markets in question are open: the Asian session, the European session, and the North American session. Most digital platforms in Nigeria will provide you access to the US markets; a number of others allow you to trade gold, gold stocks, and gold ETFs from elsewhere too.

The Nigerian Market

There’s also the option of trading gold locally. You may either do this by buying and selling gold ETFs on the Nigerian stock market, or by purchasing and selling actual gold jewelries, gold dust, and gold in other forms. You can do the former through digital platforms that let you trade ETFs (e.g. Trove). An example of a gold ETF available at the NGX is NewGold ETF. As for the latter, there are many dealers you could check out, both online and in physical markets.

Best Time to Trade Gold in Nigeria: Factors to Consider

Here are a number of factors you should weigh before deciding whether it’s time to buy or sell gold in Nigeria.

Global Economic Data

Anyone who wants to really succeed at the business of gold will need to acquaint themselves with the goings on in the global economy. For example, a slowdown in economic growth or an outright recession will cause many investors to seek traditional safe havens like gold. As a result, the price of gold will rise in such situations.
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Central Bank Policies

Changes in interest rates and monetary policies of major central banks can influence gold prices. Whenever central banks (whether in Nigeria or abroad) take actions that devalue the local currency, more investors will want to protect their wealth; one way they can do this is by buying and holding gold. Traders should monitor central bank statements and policy decisions for potential market-moving information.

Inflation or Deflation Concerns

Gold is often a great hedge against inflation. Besides being a response to the naira losing value against major foreign currencies, the upward swing of gold prices in naira we’ve seen this year has also helped holders save their wealth from rampant inflation. You will want to purchase more gold when inflation is low, so you can sell for a decent return when they are high (or just hold for the long term).

Geopolitical Events

There’s a lot to pegging the price of gold than pure economics. Geopolitical tensions, such as trade disputes, political instability, or conflicts, can drive investors towards safe-haven assets like gold. If you’re going to trade gold, you should stay informed about global events that could impact market sentiment.
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Final Words

The best time to trade gold depends on various factors: trading sessions, economic data releases, central bank policies, and geopolitical events. Successful gold trading requires a comprehensive understanding of these factors and their interplay. You should be mindful of the risks associated with gold trading, use risk management strategies, and stay informed about global economic and political developments. With these under your control, you’ll navigate the intricate world of gold trading and take advantage of the precious metal’s unique attributes as a store of value and safe-haven asset. Featured Image Source: Lite Finance
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This article was first published on 14th November 2023


Ikenna Nwachukwu holds a bachelor's degree in Economics from the University of Nigeria, Nsukka. He loves to look at the world through multiple lenses- economic, political, religious and philosophical- and to write about what he observes in a witty, yet reflective style.

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