【CFD Feature ⑤】 CFD Popular Stock No. 2: Gold (GOLD) — A Safe Asset Representing Value in Itself [Ryuji Satou]

Profile of the specialist who explains: Ryuji Sato

Born in 1968. After graduating from a US university in 1993, joined Zeinex (later Oval Next) as a financial and investment information vendor, writing analyst reports and engaging in trading, covering macroeconomic analysis, forex, commodities, and stock markets. In 2010, founded H-Square Co., Ltd., writing analyst reports, planning/publishing “FOREX NOTE Currency Notebook,” and serving as a radio host on investment-related programs. Individual trader. International Federation of Technical Analysts member and certified technical analyst. Main host of Radio Nikkei “The Money Ono’s Market Forecast” (Mondays 15:00–).

Gold with many favorable factors now

We asked Ryuji Sato about the characteristics of gold, the symbol of safe assets.

“The biggest difference with currencies is that gold itself has value. When tensions escalate among major powers or in the Middle East, gold tends to be bought. Also, gold tends to fall in rising interest-rate environments and rise in easing environments. The current global ultra-easy monetary policy and US-China tensions provide strong factors for gold.”

What’s more concerning is the market’s sharp moves.

“When a crash occurs and there is a dollar shortage in the financial markets, selling gold to procure dollars intensifies. It initially declines, but once the dollar shortage subsides, it is often bought back as a safe asset and tends to rise significantly after a crash. Gold is highly volatile and tends to form trends in tandem with monetary policy, so medium- to long-term trading with limited leverage is recommended.”