Gold Trading A-Z: How to Trade Gold in Australia

With a return of 35.87% in 2024 and prices surpassing $2,950 (by 20-02-2025), gold demonstrates its stable value and resilience during uncertain times.

Will this rally continue into 2025? Should I invest in gold? How can I trade gold in Australia? Is there a step-by-step guide to navigate the gold trading process?

This article will answer all your questions! Let’s get started!

Trading gold in 2025 presents both opportunities and challenges. With gold prices having surged in recent years and expectations of continued upward momentum, particularly amid global economic and uncertainty, it may seem like an attractive option for investors. 

Furthermore, gold can serve as a hedge against inflation and market volatility, making it appealing for those looking to diversify their portfolios. However, potential customs duty hikes and fluctuating market conditions could impact prices. 

BullionVault and JPMorgan expect gold prices to rise to $3,000 per ounce in 2025. Here are the specific factors that support this forecast:

•  Central Bank Buying: Global central banks are expected to purchase over 900 metric tons of gold in 2025, continuing a trend of increasing reserves. This strategy aligns with efforts to diversify away from the US dollar, with major economies such as China and India leading the charge. (Source: UBS Global Wealth Management-Central Banks Will Buy 900 Tons in 2025, UBS | Scottsdale Bullion & Coin)

•  Geopolitical Uncertainty: Ongoing geopolitical tensions—ranging from the Russia-Ukraine conflict to instability in the Middle East—drive investors toward safe-haven assets like gold. Historically, gold prices tend to rise during global crises as investors seek stability. (Source: World Gold Council-Currency crises, over-leverage and low rates – potential drivers of a gold bull market | World Gold Council)

•  Interest Rate Cuts & USD Weakness: Analysts anticipate that the US Federal Reserve will cut interest rates in 2025, reducing the opportunity cost of holding non-yielding assets like gold. Additionally, a weaker US dollar could make gold more attractive for international investors. (Source:JM Bullion-How Does the US Dollar Affect the Price of Gold? | JM Bullion)

So should I trade gold in 2025?

It is essential for investors to approach gold trading with a clear strategy. They should consider factors such as market volatility and their individual investment horizons. Ideally, gold should constitute a small portion of their overall portfolio, typically between 5% and 10%. Additionally, investors should stay informed about economic indicators and geopolitical factors that influence gold's market dynamics.

For Australian investors, platforms like the Perthmint.com and ASX-listed gold ETFs offer accessible options.There are several ways to access the gold market, including Spot Gold, Gold Futures, Gold Options, Gold Stocks, ETFs, and Gold CFDs, among others. Choosing the most suitable and accessible way to start gold trading can be a great beginning for beginner traders.

Below is a comparison of the most common ways to trade gold in Australia.

When choosing a method to trade gold, consider the following factors:

Trading Goal

First, clarify whether you aim to trade physical gold or gold contracts:

• Physical Gold (also known as spot gold) requires storage and has lower liquidity, which can lead to depletion of your gold holdings.
  

• Gold Contracts, such as CFDs (Contracts for Difference), do not require storage fees. Traders profit from the price differences between buying and selling. CFDs, in particular, have no expiration date, allowing for more flexible trading.
  

Trading Budget

Your trading budget should align with your risk tolerance and investment timeframe. Different gold trading methods have varying cost structures:

When thinking about gold investing, you have many choices. With actual gold, for example, you could start with as little as A$50 via Perth Mint's website. Storage fees could apply if you decide not to keep the gold personally even though there are no direct buy or sell expenses. For example, if you traded A$1,000 worth of gold, you might pay a total fee of about A$20 considering a 1% fee for both buying and selling.

On the other hand, trading gold CFDs calls for a minimum volume of 0.01 lots (about A$934 with 5:1 leverage), where you would have spread costs—usually averaging around 0.55, which translates to roughly $0.55 per trade for a standard contract size of 100 ounces—and possible overnight funding fees if you hold positions overnight. Gold ETFs with a minimum investment of roughly A$100 (depending on your broker) provide modest yearly management costs around 0.40% together with brokerage commissions for a less leveraged approach. 

More sophisticated choices such as gold futures and options usually call for an investment of A$5,000 or more and include extra expenses including contract premiums, margin requirements, and commissions. Starting with gold ETFs or fractional gold investments is smart for beginners; before making actual investments, think about practicing on demo accounts provided by sites like Mitrade or IG Australia.

Step 1: Choose a Reputable Trading Platform

Start by visiting the official website of your chosen trading platform, ensuring that you are using a reputable broker. 

• Check Regulation: Ensure the broker is licensed under ASIC (Australian Securities and Investments Commission).

• Compare Fees: Look for platforms with low spreads and minimal commissions.

• Read Reviews: Check customer feedback and trading conditions before signing up.

Popular ASIC-regulated platforms for gold trading include:

• Mitrade (user-friendly, no commission fees)

• IG Markets (advanced charting tools)

• CMC Markets (tight spreads, good for active traders)

Alternatively, you can download their mobile app for trading on the go.

Beginners can utilize a demo account to practice their trades and become familiar with the markets. Mitrade provides a virtual balance of 50,000 AUD to help you start your risk-free trading journey.

Step 2: Create Your Trading Account

Once you've selected a broker, the next step is opening an account. Australian regulations require identity verification to ensure security and compliance.

How to Sign Up:
1. Register – Enter your name, email, and phone number on the broker’s platform.
2. Verify Your Identity (KYC) – Upload a driver’s license, passport, or utility bill to comply with ASIC regulations.
3. Choose Account Type – Decide between:

-Demo Account – Practice risk-free trading with virtual funds.

- Live Account – Trade real markets with your own capital.

Step 3: Fund Your Account
Now that your account is set up, it's time to deposit funds. Most Australian brokers accept multiple payment methods with AUD support.

🔹 Deposit Methods:

• Bank Transfer (1–3 business days, may have fees)

• Credit/Debit Card (instant, may incur processing fees)

• E-Wallets (e.g., PayPal, Skrill – fast but check for fees)

Step 4: Follow the Market and Identify Entry Points
Keep an eye on market trends and news that may affect gold prices. Utilize technical analysis tools, charts, and indicators to determine the best entry points for your trades.

Step5: Determine Exit Points and Set Take-Profit/Stop-Loss Levels

Before entering a trade, establish your exit strategy. Decide on your take-profit level, where you will close the trade for a profit, and your stop-loss level, which limits potential losses. This helps manage risk effectively.

By following these steps, you can navigate the gold trading process more confidently and strategically.

Gold has long been considered a safe-haven asset and a hedge against inflation, making it an attractive investment option in Australia. Factors such as economic stability, currency value, and global market trends can influence the demand for gold. With a robust mining industry and a cultural affinity for precious metals, investing in gold can be a viable strategy for Australian investors.

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