What is Gold in Forex Trading?

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It is the most precious chemical element with atomic number 79 and symbol Au. It is one of the higher chemical element that occurs naturally as grains or nuggets, in veins, in rocks and alluvial deposits. More commonly it occurs in solid solution chain with the other natural elements like silver, palladium and naturally alloyed with copper. Less it usually occurs in rock crystal as gold compounds, frequently with tellurium.

A relatively gold is the most precious rare element that has been used for jewellery, coinage, and variety of electronic equipment and products due to its durability, conductivity and malleability throughout recorded history. In past gold also used as a standard in monetary policy. In 1930 coins made of gold stopped to be issued as circulating currency. After the introduction of fiat currency system by the US in 1971, the world gold standard was abandoned.

As of survey report 2015, an over-all 186,700 tons of gold occurs above ground. The world intake of new gold made is 40% in investments, 10% in industry and 50% in jewellery. Due to its high conductivity and durability, gold is used in almost all types of computerized devices. It is also used in coloured glass production, infrared shielding, tooth restoration and gold leafing. In medicine, certain gold salts are quietly used as anti-inflammatories.

Whereas usually other elements are white or grey while gold is reddish yellow. That’s the reason; gold is highly used in jewellery formation. As of 2017, the world major gold manufacturer so far as the Republic of China with 440 tons per year.

 

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