Decentralized Gold Trading, what is it exactly?

Decentralized gold trading, what is it exactly? Discover the principle of decentralized trading applied to gold, including concrete examples.

Decentralized gold trading refers to the process of buying and selling gold in a decentralized manner, using a blockchain network or other peer-to-peer (P2P) technology, without the need for a centralized intermediary or authority.

In a decentralized gold trading system, buyers and sellers can interact with each other directly without the need for a traditional exchange or brokerage. Instead, they can use a decentralized platform or smart contract to exchange gold assets, such as gold bullion, gold coins, or gold-backed tokens, in a secure and transparent way.

Decentralized gold trading can offer several benefits over traditional gold trading systems, such as lower transaction costs, faster settlement times, greater privacy and security, and more accessibility to a wider range of investors.

Additionally, decentralized gold trading can help to eliminate counterparty risk, as all transactions are recorded on a public blockchain ledger, and the gold assets are usually stored in secure, audited vaults.

Decentralized gold trading, practical examples:

Aurus: Aurus is a blockchain-based platform that allows users to trade physical gold-backed tokens. The Aurus platform is powered by the Ethereum blockchain and allows users to trade gold assets directly without the need for a centralized authority. Aurus provides its users with real-time gold prices, secure vault storage, and the ability to redeem their tokens for physical gold.

Tether Gold: Tether Gold (XAUt) is a gold-backed token that is pegged to the price of gold and traded on the Ethereum blockchain. Each XAUt token is backed by one troy ounce of gold, held in a secure vault in Switzerland. Tether Gold allows investors to buy and sell gold in a decentralized manner, with the added benefit of being able to trade fractional amounts of gold.

DGLD: DGLD is a gold-backed token that is issued by CoinShares in partnership with MKS (Switzerland) SA. Each DGLD token is backed by one-tenth of a troy ounce of gold, held in a fully-audited vault in Switzerland. DGLD allows investors to buy and sell gold in a decentralized manner, while also providing the ability to redeem the tokens for physical gold.

Paxos Gold: Paxos Gold (PAXG) is another gold-backed token that is traded on the Ethereum blockchain. Each PAXG token is backed by one troy ounce of gold, held in a secure vault in London. Paxos Gold allows investors to buy and sell gold in a decentralized manner, with the added benefit of being able to redeem the tokens for physical gold.

Gains Trade: decentralized trading platform – Cryptos, Forex, Gold, Silver, Oil, Palladium, Platinum.

When you’re decentralized trading, and all the more so when you’re using leverage, you need to follow technical analysis on a regular basis, so that you know which prices to watch out for, both on the upside and the downside.

The technical analysis in daily, fast and practical

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Fundamental Analysis of Gold (October 2024):

The fundamental analysis of gold hinges on several key factors influencing its long-term price. Here are the main elements to monitor in 2024:

1. Central Bank Policies: Decisions by the U.S. Federal Reserve (Fed) and the European Central Bank (ECB) regarding interest rates are crucial. The Fed has maintained higher interest rates to combat inflation, which temporarily weakened gold. However, the potential for medium-term rate cuts could boost demand for gold as investors seek protection against inflation.
2. Global Inflation: Inflationary concerns remain a central driver of gold demand. With persistent inflation in several major economies (U.S., Europe), gold is increasingly seen as an effective hedge against currency devaluation.
3. Geopolitics and Economic Crisis: Gold is traditionally considered a safe haven during times of geopolitical tension or economic instability. In 2024, tensions between major powers, particularly the U.S., China, and Russia, continue to support gold demand.
4. Physical Demand: Physical demand for gold (bullion, coins) is also rising, particularly in China and India, where gold is a key part of savings and tradition. This strong demand contributes to long-term price support.

Technical Analysis of Gold (October 2024):

Regarding technical analysis, recent charts show gold reaching a key resistance level around 2,680 USD/ounce, with sideways movements near this zone.

1. General Trend: Gold is in a medium-term bullish trend, having bounced multiple times from key support around 2,630 USD/ounce. Prices have consolidated above this level, and movements suggest that a break above 2,680 USD could drive prices higher toward 2,700 USD.
2. Support and Resistance:
   • Main Support: 2,620 – 2,630 USD/ounce
   • Immediate Resistance: 2,670 – 2,680 USD/ounce
3. Moving Averages: The 50-day and 200-day moving averages confirm the bullish trend, with the 50-day MA above the 200-day MA, a positive signal for the market. However, a short-term drop below the 50-day MA could indicate a technical correction toward 2,600 USD before a recovery. The 20-day moving average is significantly above the 50-day, signaling an overall buying trend, though a pullback to the 20-day MA is possible.
4. Technical Indicators:
   • RSI (Relative Strength Index): The indicator is close to the overbought zone, meaning the market could experience a short-term pullback, but gold remains in a bullish dynamic.
   • MACD (Moving Average Convergence Divergence): The MACD shows positive divergence, indicating a probable continuation of the upward trend.

Key Prices to Watch:

• 2,660 USD/ounce: A break above this could trigger a new positive momentum toward 2,700 USD.
• 2,620 USD/ounce: If this support level breaks, gold could test lower support around 2,580 USD/ounce.

Conclusion:

Gold remains a solid safe-haven asset in 2024, supported by inflation concerns, geopolitical tensions, and monetary policies. Both fundamental and technical analyses suggest a continued bullish trend in the medium term, with key resistance levels to watch around 2,660 USD/ounce and 2,700 USD/ounce.

Direct access to the decentralized trading platform

Information and conclusion:

It is possible to trade without sending your funds to a centralized trading platform by simply choosing a decentralized trading platform. The latter allows trading without brokers, without registration, while always keeping control of your assets, adhering to the true principles of decentralization. A prime example of this is the platform gains.trade, which enables you to easily place trades using your Metamask account, for instance.

In summary, these decentralized gold trading platforms allow investors to buy and sell gold assets in a secure, transparent, and efficient manner without the need for a centralized intermediary. By utilizing blockchain technology, investors can enjoy lower transaction fees, faster settlement times, and increased accessibility to gold investments.