How to trade or invest in gold
Discover how to speculate on gold with spot prices, CFDs and spread betting, as well as gold-linked shares, ETFs and bullion.
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Key Takeaway
Investing in gold means buying and holding the asset for the long term, typically as a way to diversify your portfolio or to hedge against inflation. Trading gold, on the other hand, involves the short-term buying and selling of gold to try to profit from its price movements.
Ready to start now?
Are you ready to trade or invest in gold? Take your position in just three steps:
Select a gold market to trade
Choose between our gold markets or a selection of gold stocks and ETFs.
Decide whether to trade or invest
Speculate on gold short term, or invest for a longer-term outlook.
Open a live account
Fill in our online form to create a spread betting, CFD trading or share dealing account in minutes.
What is gold investing and trading?
Gold investing and trading are two different ways to take a position on the future price movement of gold markets.
When you invest in gold, you’d take ownership of the asset upfront and profit if the precious metal rises in price. When you trade gold, you’re taking a position on the underlying price rising or falling – meaning you won’t be taking ownership of the asset itself.
There are several types of gold assets available for you to trade or invest in, depending on whether your interest is in the physical asset or not. These include:
Gold bullion
Physical gold – in the form of coins and bars – is commonly used as a store of value, for both individual investors and banks. But the expensive safekeeping and insurance requirements often deter more active investors from buying the metal outright
Spot gold
The spot price of gold is how much it would cost to buy upfront – or on the spot. It is usually the price of one troy ounce of gold. Trading spot gold is a popular means of getting exposure to bullion without having to take ownership of the precious metal
Gold futures
Futures contracts enable you to exchange gold for a fixed price on a set date in the future. You’d have the obligation to uphold your end of the deal, whether that’s through a physical or cash settlement. Futures contracts are standardised for quantity and quality – only their price is driven by market forces
Gold options
Options contracts work in a similar way to futures, but with no obligation to execute the trade when buying. Options give you the right to exchange either physical gold or gold futures at a specific price on a specific date. Call options give the holder the right to buy the precious metal, while put options give the holder the right to sell it
Gold ETFs
Exchange traded funds (ETFs) track the movement of a basket of shares of publicly traded gold mining, refining and production companies. Trading or investing in an ETF gives you much wider exposure than you’d get from a single position, which makes them a popular way of diversifying a portfolio. ETFs are passive investments, which replicate market returns rather than seeking to outperform them
Gold stocks
Trading on or investing in stocks can be a great way to get indirect exposure to gold. You can gain exposure to every element of the gold industry, from mining and production to funding and sales. It’s important to note that gold stocks don’t always move in the same way as bullion, as there are a lot of other factors that drive the prices of shares.
Start investing or trading in gold?
Consider our ISA or CFD trading accounts
What moves the price of gold?
The price of gold is determined by supply and demand. There are a huge range of factors that can impact the market price, including:
- Global demand
- Mining production
- Interest rates
- The US dollar
- Financial stress and political insecurity
Since the 1970s, the overall demand for gold has continued to grow, driving up the gold price over the long term, though with significant volatility.
The price of gold saw a dramatic rise in the 1970s due to high inflation and geopolitical tensions, followed by periods of fluctuation. Demand patterns vary year-to-year and depend on multiple factors, but gold continues to be sought all over the world for a variety of reasons, such as jewelry, technology and as a value store for central banks and investors.
For example, as of 2025, investment demand has been a strong driver due to geopolitical uncertainty and inflation. Historically, jewelry demand has typically accounted for the largest share of the market, though high prices have sometimes led to a decline in consumption. Meanwhile, investment via exchange-traded funds (ETFs) has grown significantly since the 2000s, becoming an important source of demand.
A large portion of gold demand comes from middle-class expansion in India, China and South-East Asia.
The rate at which mining companies produce gold has plateaued in recent years, leading to ongoing discussions about 'peak gold' (the theoretical point at which maximum global extraction is reached), followed by a gradual decline.
While some industry experts believe this peak has occurred, the World Gold Council reported that global mine production actually reached new record highs in 2024, continuing a general upward trend of extraction since the 1970s.
The confusion around declining supply is often linked to the fact that it is becoming harder and more capital-intensive to find new high-grade deposits. Mining companies have significantly cut exploration budgets, which reduced the pipeline of new projects. This means new major discoveries are rare, and the average time from discovery to production can take nearly 20 years.
To find new sources, the industry is exploring technological advancements to access previously unreachable gold or improve extraction from lower-grade ore. There is even speculative discussion about the possibility of mining in outer space.
Although there is a finite supply of gold on Earth, as it cannot be grown in the same way as some other commodities, virtually all the gold ever mined is theoretically still accessible. This means a significant amount of gold is now recycled to continue to meet demand, accounting for around a quarter of the total annual supply.
When interest rates rise, gold’s price tends to fall because investors turn to stocks and fixed-income assets that will earn them capital.
Conversely, when rates fall, the price of gold rises as economic uncertainty causes investors to turn to gold as a safe haven to protect their wealth.
Gold and the US dollar have a complicated, but usually inverse, relationship. When the dollar falls, investors looking for an alternative store of value often rush in to buy gold, driving up its price. A falling dollar also tends to increase the value of other currencies, and that greater buying power can increase the demand for gold that was previously unaffordable.
In periods of financial stress and political instability, gold is often seen as a safe-haven investment as it tends to retain its value when other markets fall in price.
For example, gold has reached record highs in 2025, at least in part due to central bank buying and retail demand for a safe haven with no counterparty risk.
Gold as a safe haven
Investors tend to rely heavily on gold in times of political or economic uncertainty, and the metal is often used as a hedging tool against inflation or currency devaluation.
For example, gold increased more than 13% between January and May 2020 during the Covid-19 crisis, due to rising market volatility. Investors started pulling money from cash assets in favour of the precious metal in order to combat the political, economic and social instability.
However, when any investment becomes too popular there’s the risk of a price bubble being created, which could send prices spiralling when it bursts. For this reason, many gold traders choose to diversify into other markets or manage their risk with stop-losses.
Is investing or trading in gold preferable?
Choose which gold asset you’re interested in, and discover how to take a position below.
You might want to trade gold if:
- You want to speculate on the price of gold rising or falling
- You want to leverage your exposure
- You want to take shorter-term positions on gold
- You want to hedge your portfolio
- You want to trade without owning the underlying asset
- You want to open tax-efficient positions1
You might want to invest in gold if:
- You’re interested in buying and selling gold stocks and ETFs
- You want to invest tax-free with a stocks and shares ISA1
- You’re focused on longer-term growth
- You want to build a diversified portfolio
- You want to take ownership of the underlying asset
- You want to gain voting rights and dividends (if paid)
Quick fact
All the gold ever mined would fit into a cube with sides of about 68 feet. Gold is also incredibly malleable, meaning a single ounce can be stretched into a wire over 50 miles long.
Gold markets we offer
There are a variety of gold markets you can trade with us, including our proprietary spot prices, futures contracts and options. Alternatively, you could get indirect exposure to gold via company stocks and ETFs.
Whichever gold market you decide to trade, it’s important to think about whether you’ll go long or short, what position size you’ll take and how you will manage your risk. We offer a range of solutions for risk management, including stop-losses and limit-close orders – these are used to close trades at predetermined levels of loss and profit respectively.
- Spot gold
- Gold futures
- Gold options
- Gold stocks and ETFs
Our gold spot price is derived from the best available quotes of our liquidity providers, with our spread wrapped around them. They’re useful for taking shorter-term positions as there are no-fixed expiries. Plus, you can perform technical analysis over a longer time frame, as you’ll get continuous pricing across the market’s entire history – rather than just the duration of a single future.
Once you’ve created your account and logged in, you can trade gold spot prices by:
- Searching for gold or finding it under ‘commodities’ in the left-hand menu
- Selecting ‘spot’ at the top of the deal ticket in the right-hand panel
- Choosing your trade size
- Opening your position by clicking ‘buy’ or ‘sell’
When you trade gold futures with us, you’ll be spread betting or trading CFDs on the underlying price. This means you won’t be entering into a futures contract, but deciding on whether it will become more or less valuable before it expires.
After you’ve opened your account and logged in, simply:
- Search for gold or find it under ‘commodities’ in the left-hand menu
- Choose ‘futures’ at the top of the deal ticket in the right-hand panel
- Select the expiry you’re interested in
- Pick your trade size
- Open your position by clicking ‘buy’ or ‘sell’
At expiry, we’ll roll over your futures contract into the next month, unless you’ve given us an instruction to close your position. Please note that there may be a difference in the price for the next month’s contract.
Options are a popular means of speculating on commodities prices as they give you the right, but not the obligation, to exercise the contract.
Once you’ve created your account and logged in, you’d just need to:
- Select ‘options’ from the menu on the left
- Tick ‘commodities’ and choose between gold daily, weekly, or monthly options
- Pick the option type, strike price and trade size you want
- Open your first position
To get indirect exposure to gold, you could take a position on companies within the gold supply chain, or ETFs – some track the underlying gold price, while others follow a group of gold company shares.
You trade on the underlying price of gold stocks and ETFs with CFDs or spread bets. As you wouldn’t take ownership of the underlying shares, you can go long or short.
Alternatively, if you choose to buy and hold shares, you would do so in the view that they will increase in price as gold becomes more valuable and their revenues rise. By taking ownership of company shares, you would receive voting rights and any dividends that are paid.
Choose whether to go long or short on gold
When you start trading gold or gold-linked assets via spread bets and CFDs, you’ll be able to choose between buying and selling the market – also known as going long or short. You’d buy if you expected the asset’s price to rise in a given timeframe, and you’d sell if you thought its price was going to decline.
If you were going to invest in gold stocks and ETFs instead, you could only go long – taking advantage of a longer-term rise in prices.
To understand which way the market is likely to move, it’s important to do thorough research – both technical and fundamental.
Gold price indicators
Once you've decided how to invest in gold, you'll need tools and resources to identify opportunities:
- Expert analysis — follow technical and fundamental analysis from precious metals specialists to understand price trends and key support/resistance levels
- Economic indicators — monitor inflation data, interest rate decisions, US dollar movements, and central bank gold purchases – these heavily influence gold prices
- Market sentiment — pay attention to safe-haven flows during geopolitical crises or financial stress, as these often drive rapid gold price movements
- Technical tools — use indicators like MACD, RSI, and Bollinger Bands to identify entry and exit points. Set price alerts to notify you when gold reaches your target levels
- Diversification — consider spreading investments across different gold assets – combining physical holdings, mining stocks, and ETFs can provide balanced exposure to different aspects of the gold market
How to invest in gold
Ready to invest in gold UK markets? Follow these steps to get started:
- Decide between physical gold, spot trading, futures/options, individual gold stocks, or ETFs based on your goals, risk tolerance and time horizon.
- For buying gold shares or ETFs as long-term holdings, you'll need a stocks and shares ISA or general investment account. For trading spot gold, futures or options with leverage, you'll need a spread betting or CFD trading account.
- Use fundamental analysis to understand supply-demand dynamics, and technical analysis to identify price trends. Monitor factors like US dollar strength, interest rates, inflation data, and geopolitical events.
- Never invest more than you can afford to lose. Consider how much of your total portfolio should be allocated to gold. Many advisors suggest 5-10% for diversification purposes.
- Use stop-losses to limit potential losses and take-profit orders to secure gains at predetermined levels. Consider diversifying across multiple gold-related assets rather than concentrating in one area.
- Keep track of your positions, stay informed about market developments, and rebalance your portfolio periodically to maintain your target allocation.
FAQs
Can I profit from trading or investing in gold?
Yes, you can make profit by correctly predicting whether a the value of gold will rise or fall in a given timeframe.
If you are investing in gold shares or ETFs, you could only profit by going long. However, if you decide to trade shares with derivative products, you could take advantage of falling market prices by going short.
How do you trade or invest in gold?
You can trade or invest in gold by buying and selling spot gold, gold futures, gold options, or gold stocks and ETFs. To open a position, you’ll need a CFD, spread betting or share dealing account.
What moves gold markets?
The price of gold is moved by the forces of supply and demand. Factors that can play a role include: mining production, inflation and interest rates, political insecurity and safe-haven flows, and the value of the US dollar.
When can I trade gold?
Our proprietary gold spot market is available between 11pm Sunday to 10pm Friday (UK time). Gold futures can be traded 24 hours a day, five days a week, except between 10pm to 11pm (UK time). Daily gold options trade between 7.30am on Monday until 9.15pm on Friday (UK time) – weekly and monthly options are also available.
Important to know
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Professional clients trading spread bets and CFDs can lose more than they deposit.
Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. They’re not suitable for most investors. Before you invest, you should consider whether you understand how options and futures work, the risks of trading these instruments and whether you can afford to lose more than your original investment.
Trading stocks and shares ‘on margin’ within a US options and futures account – meaning that you only finance part of the cost of acquiring a position in a security – carries additional risks over buying securities on a fully funded basis and may result in losses exceeding your original investment. Trading on margin will also result in additional costs to you as the investor and any securities purchased using margin may be held as collateral by the lender, restricting both your rights as shareholder, and your ability to use the securities until the margin trade is closed. You should familiarise yourself with these risks before trading on margin.
The value of shares, ETFs and other ETPs bought through a share dealing account, a US options and futures account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.
Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and US options and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd.
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