This summary covers all metals discussed in this section. Use it as a quick reference for metal trading.
Metals Overview
Precious Metals
| Metal | Symbol | Primary Driver | Characteristics |
|---|---|---|---|
| Gold | XAUUSD | Safe haven/USD | Most liquid, lowest volatility |
| Silver | XAGUSD | Gold correlation | Higher volatility, industrial use |
| Platinum | XPTUSD | Diesel autos | Supply concentrated |
| Palladium | XPDUSD | Gasoline autos | Russia supply risk |
Industrial Metals
| Metal | Symbol | Primary Driver | Characteristics |
|---|---|---|---|
| Copper | COPPER | Economic growth | "Dr. Copper", China driven |
Key Relationships
Dollar Correlation
All Precious Metals:
- USD up = metals down
- USD down = metals up
- Watch DXY
- Primary filter
Interest Rate Impact
Precious Metals:
- Higher rates = negative
- Lower rates = positive
- Real rates matter
- Fed policy important
Economic Growth
Industrial Metals:
- Growth = positive
- Recession = negative
- China crucial
- PMI data matters
Comparing Metals
By Volatility
| Rank | Metal | Volatility Level |
|---|---|---|
| 1 | Gold | Lower |
| 2 | Copper | Moderate |
| 3 | Silver | Higher |
| 4 | Platinum | Higher |
| 5 | Palladium | Highest |
By Liquidity
| Rank | Metal | Liquidity |
|---|---|---|
| 1 | Gold | Highest |
| 2 | Silver | High |
| 3 | Copper | Good |
| 4 | Platinum | Lower |
| 5 | Palladium | Lowest |
Quick Reference
Gold (XAUUSD)
Key Points:
- Safe haven asset
- Inverse to USD
- Interest rate sensitive
- Most popular metal
- Technical analysis works well
Best For:
- All trading styles
- Safe haven plays
- Dollar correlation trades
- Trend following
Silver (XAGUSD)
Key Points:
- Follows gold (amplified)
- Industrial demand
- Higher volatility
- Watch gold/silver ratio
Best For:
- More aggressive traders
- Gold correlation trades
- Volatility seekers
- Ratio trading
Platinum
Key Points:
- Diesel auto demand
- South Africa supply
- Lower liquidity
- Fundamental focus
Best For:
- Long-term positions
- Fundamental traders
- Auto industry views
Palladium
Key Points:
- Gasoline auto demand
- Russia supply risk
- Lowest liquidity
- Highest volatility
Best For:
- Specialist traders
- Supply/demand analysis
- Long-term fundamental views
Copper
Key Points:
- Economic indicator
- China-driven demand
- Green energy demand
- "Dr. Copper"
Best For:
- Macro traders
- Economic views
- China exposure
- Trend following
Trading Strategies by Metal
Gold Strategies
- Trend following
- Dollar correlation
- Safe haven trades
- Range trading
Silver Strategies
- Gold correlation
- Ratio trading
- Trend following
- Volatility plays
Copper Strategies
- Economic trend trading
- China data trading
- Range trading
- Green energy theme
Risk Management
Position Sizing Guidelines
| Metal | Suggested Risk |
|---|---|
| Gold | 1% |
| Silver | 0.5-1% |
| Copper | 1% |
| Platinum | 0.5-1% |
| Palladium | 0.5% or less |
Stop Loss Approach
All Metals:
- Beyond technical structure
- Factor volatility (ATR)
- Wider for volatile metals
- Honor always
Key Drivers Summary
Precious Metals
- US dollar strength
- Interest rates/Fed policy
- Inflation expectations
- Geopolitical events
- Safe haven demand
Industrial Metals
- Economic growth (GDP)
- China demand
- Manufacturing activity
- Supply disruptions
- Green energy transition
Technical vs Fundamental
Gold/Silver
- Both work
- Technical primary
- Fundamentals filter
Platinum/Palladium
- Fundamental primary
- Technical secondary
- Supply/demand focus
Copper
- Both important
- Economic data crucial
- Technical for timing
Practical Tips
For All Metals
- Check dollar direction
- Note upcoming events
- Calculate position size
- Use appropriate stops
- Monitor correlations
Starting Out
- Begin with gold
- Most liquid, stable
- Learn characteristics
- Expand to others later
Key Takeaways
- Gold is most liquid and suitable for beginners
- Silver follows gold with amplified moves
- PGMs require fundamental analysis focus
- Copper tracks economic health
- All inversely correlated with USD
- Position size for volatility
- Wider stops needed for volatile metals
- Watch for supply disruptions
- Green energy changing demand landscape
- Master gold before other metals
What's Next?
Explore energy commodity trading, including oil and natural gas.
This article is for educational purposes only and does not constitute financial advice.
Risk warning. This is education only, not financial, investment, tax or legal advice, and not a recommendation to buy or sell anything. Trading forex, CFDs, stocks, commodities, futures, options and crypto is high-risk; with leverage you can lose more than you deposit, and most retail traders lose money. Before you trade or invest in any form, check the local laws where you are and the rules of your country of residence, and consider your own financial situation; if in doubt, ask a licensed adviser. Past and tested results, and all examples, are for illustration only and do not guarantee future results.