What Time Does the Gold Stock Market Open?

Wondering when the XAU/USD stocks are available for trading? Check out this post to find out!

November 16, 2021

What Time Does the Gold Stock Market Open?

You probably already know that the forex market is open 24 hours a day, five days a week. However, it's the trading sessions that determine when exactly the market is open.

The forex market maybe divided into four major trading sessions:

·        The Sydney session

·        The Tokyo session

·        The London session, and

·        The New York session

Most of the time, you can look at a chart and easily determine what Time Zone is being referred to. Sometimes this is not possible, however, and that is when things get a bit unclear. When it comes to the XAU Market, you might find yourself asking: "What time does the gold market open?"

This can be a hard question to answer, as it all depends on what site or program you are looking at. This is because the gold market often fluctuates between being open 24 hours a day and only 5 hours a day for trading purposes.

Why The Forex Market is open 24 hours a Day?

The forex market is the biggest financial market in the world. Forex trading is performed not at a central location but among participants by phone as well as via electronic communication networks. The market is open every day in different parts of the world at 5 pm.

Central banks have relied upon foreign exchange markets since 1971 when fixed and currency markets ended due to the decline in the gold standards. This global scope signifies there are always traders on and off the planet that are making and fulfilling demands for a particular currency. 

Why XAU/USD Trading Happens 24/7

This is partly due to geographical and time zones that are different between them and the trades are carried out in a digital data network rather than one physical exchange which can close in a 24-hour interval. Unlike other commodities, XAU remains traded in all corners of the world long after New York closes.

Domestic stocks, bonds, and commodities remain not relevant in the international marketplace and therefore are not required to continue trading within the standard working day of the issuer country.

The demand for trade in these markets is not high enough to justify opening 24 hours a day because an emphasis on the domestic market means that only a few shares are traded at 3a.m.

 

What Are the Gold Trading Market Hours?

International currency exchange markets are comprised of banks, commercial firms, central banks, investment management firms, and hedge funds. The two busiest hours are Manhattan and London.

The seven most traded currencies worldwide are the United States dollar, the Euro, the Japanese yen, the British pound, and the Australian dollar as well as Canada.

Some currencies in  some developing markets don't run 24 hours a day on trading machines. Despite the highly decentralized nature of the forex market, this remains an efficient transfer mechanism for all of the participants and an extremely efficient access mechanism for those who wish to speculate from any location in the world.

For the XAU/USD commodity, here are its trading hours in the three of the aforementioned four main trading sessions:

New York

  • Opens at 8:20am - closes at 1:30pm (local time)
  • Opens at 13:20 GMT- closes at 18:30 GMT (GMT Time Zone)

London

  • Opens at 8:00am - closes at 5:00pm (local time)
  • Opens at 8:00 GMT - closes at 17:00 GMT (GMT Time Zone)

Tokyo

  • Opens at 9:00am - closes at 3:30pm, then opens at 5:00pm - closes at 11:00pm (local time)
  • Opens at 00:00 GMT - closes at 6:30 GMT, then opens at 8:00 GMT - closes at 14:00 GMT (GMT Time Zone)


 

What Are the Most Volatile Currency Pairs?

The most commonly traded currency pairs are EUR/USD, GBP/USD, USD/JPY, and USD/CHF. The EUR/USD is particularly as it is used as a benchmark for other currencies to follow as a leading indicator.

In addition to those four major currency pairs mentioned above, trading in some of their other specific pairs can be profitable too. The most commonly traded other currencies are the AUD/USD, NZD/USD, and CAD/USD.

The reason why most traders choose to go with major currency pairs is that they are much more liquid. Liquidity allows smaller traders to make a decent profit when trading because it has the least amount of volatility. These major currency pairs allow traders to expand their portfolios and diversify their risks to limit any potential losses.

Unfortunately, this is not the case with pairs from emerging markets. These pairs are not as liquid as major currency pairs, so it may be difficult to even close out a particular trade at the end of the day.

This is because their currencies are generally more volatile compared to other currencies, which causes them to have huge gaps in prices because of sudden movements.

Examples of such pairs are USD/TRY, MXN/USD, and NZD/CAD, among others.

 

What is the Best Time to Trade Gold?

It seems the ideal time for currency trading is when the marketplace is the most active. The biggest overlap is between the London and New York sessions. The London session is also the busiest market of them all, particularly during the midweek.

Traders try to capitalize on the most active trading hours, which is supported by a high volume of trading. The hour of the day when XAU/USD is traded the most is between 3:00 p.m. and 11:00 p.m., which is UTC+3 (GMT+3). Events that may trigger significant gold price fluctuations should also not be ignored.

 

What Are Forex Market Hours?

As mentioned above, the forex trading hours are divided into four major sessions: Sydney, Tokyo, London, and New York. These are the largest trading hubs accounting for almost75% of the FX day volume.

The markets open on Sunday at 10 am UTC - when Sydney sessions start. The New York session closes on Friday at 10 pm.

A session in the forex market opens at a specific time but there will sometimes be periods of depression during the period when the market is quite - often in the evening between 7 - 10 hours when New York will close for. Forex has been traded in decentralized places throughout the world.

 

Conclusion

Currency is the necessity that central banks must follow to finance world commerce and international economic transactions. Its 24-hour markets can meet the demand for transactions within different time zones.

For the XAU/USD market, however, the trading sessions usually open and close within several hours even if people continue to trade the commodity in other parts of the world. With the insights shared here, trading the gold commodity with regards to the opening and closing hours shouldn't be that tough. Just target the most active hours and capitalize your gains using the skills on trading the commodity.

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