How to Trade Gold During Global Crisis Event
How to Trade Gold During Global Crisis Events
When the world faces turbulence—be it a global pandemic, war, recession, or political unrest—one asset often shines brightest: gold. Regarded as a safe haven for centuries, gold becomes a magnet for investors looking to preserve capital and hedge against uncertainty.
In this blog, we’ll dive into how traders can smartly trade gold during crisis events. We’ll provide real examples, expert trading strategies, and explain why gold behaves differently during such events. You'll also find client reviews of TBIG_Fx, and a list of recommended brokers you can explore at our official website.
Why Gold is a Safe Haven
Historically, gold has served as a store of value. Unlike paper currencies that can be inflated or manipulated by central banks, gold holds intrinsic value. When markets tumble or inflation skyrockets, gold tends to retain or increase in value.
During the 2008 financial crisis, gold surged from around $800 to over $1,900 per ounce by 2011. During COVID-19, gold reached an all-time high of over $2,070 in August 2020. This performance isn't coincidental—it reflects how global uncertainty boosts gold demand.
How Global Events Affect Gold Prices
- War or Conflict: Wars in oil-rich regions or among global powers cause investors to flee risky assets. Gold becomes their go-to investment.
- Recession: Economic downturns reduce investor confidence in fiat currencies and stocks. Gold acts as a hedge against falling asset values.
- Pandemics: Health emergencies like COVID-19 slow global trade and productivity, increasing demand for physical and paper gold.
- Inflation: Gold thrives when inflation devalues fiat currencies, especially during prolonged high inflation periods.
- Currency Devaluation: Countries facing currency collapse (e.g., Venezuela, Zimbabwe) see citizens turning to gold to protect wealth.
How to Trade Gold During Crises
1. Choose the Right Trading Instrument
- Spot Gold (XAU/USD): Most common method via forex brokers. Trade the price of gold directly against the US dollar.
- Gold Futures: Contract agreements traded on commodities exchanges like COMEX.
- Gold ETFs: Exchange-traded funds like SPDR Gold Shares (GLD) offer indirect exposure.
- Gold Mining Stocks: These reflect gold prices but with added company-specific risks.
2. Use Technical and Fundamental Analysis
During crisis periods, combine both analysis approaches:
- Technical: Look for key levels—support at $1800, resistance at $2000, breakout patterns, and RSI divergence.
- Fundamental: Watch central bank decisions, inflation data, geopolitical developments, and stock market crashes.
3. Manage Risk Smartly
Gold can be volatile during crises. Always set stop-loss and take-profit levels. Avoid over-leveraging. Risk only 1-2% of your account on a single trade.
4. Example Strategy: Trading Gold During COVID-19
In March 2020, global stock markets crashed, and investors rushed to gold. After a brief dip to $1,470, gold rallied to over $2,070 in August 2020.
Traders who spotted the bounce from $1,500 support could have placed a long position with a $1,550 entry and a $2,000 target—offering over 400 pips profit.
When Not to Trade Gold
Even gold isn’t immune to corrections. For example, after peaking in August 2020, gold dropped to $1,680 by March 2021. During temporary relief from crises or hawkish interest rate hikes by the Fed, gold can pull back sharply.
Avoid entering gold trades blindly during rate hike announcements or overly stretched rallies. Wait for consolidation or pullback entries.
Client Reviews: TBIG_Fx Services
"I've been trading gold with TBIG_Fx since the Ukraine war began. Their execution speed and spreads are unbeatable!" — James M., UK
"TBIG_Fx helped me grow my $500 account to over $2,200 trading gold during COVID. Great support and analysis!" — Fatima S., Nigeria
"Excellent broker for trading gold. Their daily market updates are gold themselves!" — Ramesh K., India
👉 Visit our website to see the full list of recommended brokers and start trading with confidence.
Frequently Asked Questions (FAQ)
1. Is gold a good investment during a crisis?
Yes, gold is one of the best assets to hold during crises due to its stability and historical value preservation.
2. What time is best to trade gold?
The London and New York sessions (8 AM to 5 PM GMT) are the most volatile and ideal for gold trading.
3. How much should I invest in gold trading?
Start small—use 1-2% of your capital per trade. Gold is volatile, and good risk management is key.
4. Can I trade gold with a small account?
Yes, many brokers offer gold trading with micro-lots. You can start with as little as $100.
About Us
We are a team of passionate traders and analysts behind TBIG_Fx. Our mission is to guide retail traders in becoming profitable by offering real-time insights, market education, and broker recommendations tailored for gold and commodity trading.
Whether you're a beginner or seasoned trader, our platform equips you with the tools and partners needed to succeed during calm or crisis times.
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