Precious metals, scarce and valued for centuries.
What moves the prices of gold, silver, platinum and palladium, and how they are quoted and traded.
What precious metals are
Gold, silver, platinum and palladium are called precious metals because they are rare and have long been valued. Gold in particular has served as money and as a store of value for thousands of years, and central banks still hold it in their reserves.
Their uses differ. Gold goes mostly into jewellery and investment. Silver is used in electronics and solar panels as well as jewellery and coins. Platinum and palladium are used mainly in the catalytic converters that clean vehicle exhaust, so their prices depend more on industry.
Precious metals are traded as bars and coins, through futures contracts, through funds that hold the metal, and through contracts for difference that follow the price.
Gold and silver in focus
What moves precious metal prices
Interest rates
Gold pays no interest. When interest rates rise, holding it means giving up more income elsewhere, and when rates fall it can become more attractive.
The US dollar
Precious metals are priced in US dollars. A stronger dollar makes them dearer for buyers who pay in other currencies, which can weigh on prices.
Uncertainty and inflation
Demand for gold and silver as a store of value often rises when confidence in other assets falls or when prices in the shops are rising quickly.
Industrial demand
Silver, platinum and palladium follow manufacturing and vehicle production, so news about industry moves them more than it moves gold.
How precious metals trade
Reading a quote
Precious metals are quoted against the US dollar, with codes in the same style as currency pairs: XAU for gold, XAG for silver, XPT for platinum and XPD for palladium. The price of XAU/USD is how many US dollars one troy ounce of gold costs. The troy ounce is the traditional unit for precious metals, slightly heavier than an ordinary ounce.
Spread
Every metal has a buy price and a slightly lower sell price. The gap between them is the spread, a cost paid on every trade. It tends to be narrower for gold and silver, which trade in larger volumes, than for platinum and palladium.
Spot and futures prices
The spot price is the price for delivery now. A futures price is for delivery on a later date, and differs from the spot price by the cost of holding the metal until then, mostly interest. How Noryn Markets prices each metal is confirmed on request.
Position size
A position is counted in troy ounces or in contracts of a set number of them, so what a price move gains or costs depends on the size of the position. The trade sizes Noryn Markets offers are confirmed on request.
Leverage and margin
Leverage lets you hold a position larger than the money you set aside for it, and the money set aside is the margin. Leverage magnifies losses as much as gains. If losses take the money in an account below the margin its positions need, positions can be closed automatically, at a loss. How much leverage is available differs by account type and by market, and the figures that apply to an account are confirmed on request through the contact form.
Trading hours
Gold and silver trade for most of the day through the working week, as activity passes between centres in Asia, Europe and North America. The trading hours Noryn Markets offers are confirmed on request.
Swaps
A position still open at the end of the trading day usually has a swap applied: a small charge or credit for financing the position.
The four precious metals
Each metal is quoted against the US dollar, and the note gives its main uses. Which metals Noryn Markets offers is confirmed on request.
| Symbol | Name | Note |
|---|---|---|
| XAU/USD | Gold / US dollar | Jewellery and investment |
| XAG/USD | Silver / US dollar | Industry and jewellery |
| XPT/USD | Platinum / US dollar | Vehicles and jewellery |
| XPD/USD | Palladium / US dollar | Mainly vehicles |
The risks
Leverage magnifies losses
A small move in a metal’s price can cause a loss larger than the margin set aside for a position.
Sharp moves on news
Interest rate decisions and economic figures can move metal prices quickly, and a fast market can fill an order at a worse price than the one you set.
Smaller markets move further
Platinum and palladium trade in smaller volumes than gold, so their prices can swing further and their spreads can be wider.
Costs add up
Spreads and swaps are paid whether a trade gains or loses, and they add up over many trades or long-held positions.
Questions about precious metals
What does XAU stand for?
The X marks a code that is not a national currency, and AU comes from aurum, the Latin word for gold. Silver’s code, XAG, comes in the same way from argentum.
Why do people turn to gold in uncertain times?
Gold has kept its value over long periods and is not tied to any one government or company, so demand for it often rises when confidence in other assets falls. Its price can still fall, sometimes sharply.
How do platinum and palladium differ from gold and silver?
They are used mostly in industry, above all in vehicle exhaust catalysts, and trade in smaller volumes. Their prices depend more on manufacturing and can move more sharply.
Which precious metals does Noryn Markets offer?
Gold and silver are the two this page explains in most detail, and platinum and palladium trade on the same logic. Which metals Noryn Markets offers is confirmed on request through the contact form.
What are the trading hours for precious metals?
Metals trade for most of the day through the working week, as activity passes between centres in Asia, Europe and North America, and they pause over the weekend. The hours that apply to an account are confirmed on request through the contact form.
Other markets
- Forex
Currency pairs, where one currency is priced against another.
- Indices
A single price that follows a basket of company shares.
- Commodities
Raw materials, from energy to agricultural products.
- Shares
Prices that follow individual companies listed on stock exchanges.
- ETFs
Funds that trade on an exchange in the same way as a single share.
Interested in precious metals?
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Open accountImportant information
Trading forex and contracts for difference involves a high level of risk, and it is not suitable for every investor. These products use leverage, which means a position can be held with only part of its value set aside as margin, and leverage magnifies gains and losses alike. A position may be closed when margin requirements are not met. Markets can move quickly, and at times a market can be difficult to trade at all. Past performance is not a reliable indicator of future results. Nothing on this website is investment advice or a recommendation, and nothing here takes account of your objectives, your experience or your circumstances. Consider your own circumstances, and seek independent advice before you act.
This page explains a market in general terms, for people deciding whether they want to learn more about it. It is not advice about that market or about any instrument in it, and naming something here does not mean it can be traded through Noryn Markets.