Of all the precious metals, gold is the most popular. Investors trading gold online generally buy the metal as a hedge or safe haven against any economic, political, social or currency-based decisions. Investors also buy gold and partake in trading when a bull market is active in an attempt to enjoy larger financial gains.
Gold has been linked to foreign exchange for many years, mostly due to the Gold Standard and Bretton Woods agreement of 1944 which linked all major currencies together until 1971. Although there is no fixed link between gold and currencies in the modern marketplace, there are still strong parallels.