I just noticed that many people are interested in trading gold but still don’t know how to calculate gold prices correctly. Let me explain from my own experience.

First of all, this candlestick chart is what you need to learn. Whether trading gold or Forex, it uses the same principles. Green candles mean the closing price is higher than the opening price (the market is rising). Red candles are the opposite. Long wicks on the top and bottom show that buyers and sellers are fighting it out.

There are several important candlestick patterns. Hammer forms in a downtrend, indicating that selling pressure is weakening, with a chance of a reversal upward. Doji shows indecision in the market. Engulfing happens when a new candle “engulfs” the previous one, indicating a change in buying and selling momentum.

But that’s still not enough. To think about gold prices correctly, you also need to look at other factors. Interest rates have a big impact. When the Fed raises rates, the dollar strengthens, and gold gets cheaper because investors shift into bonds. When the Fed cuts rates, gold rises because people buy and hold gold to hedge against inflation.

The US dollar and gold move in opposite directions. When the dollar weakens, gold strengthens. When the dollar strengthens, gold weakens. This is a hard-and-fast rule for how to think about gold prices.

Oil prices also matter because they’re related to inflation. When oil is expensive and inflation is high, gold tends to rise, since gold is an asset that hedges against inflation.

Don’t forget supply and demand. During Chinese New Year and Diwali in India, gold often goes up because there are more buyers. Meanwhile, during political crises or wars, gold also rises because it’s viewed as a safe haven.

If you look at gold bar prices in Thailand for 96.5% from 2566-2567, you’ll see that in 2567 gold rose by nearly 6,350 baht. Most of the increase happened from April to March, which matches the period when the market expected the Fed to cut rates.

The technique for reading candlestick charts is to compare candle to candle and see whether buying and selling momentum is consistent. If the candles overlap a lot, it means the market is hesitant. If the overlap is minimal, it indicates real strength. Try switching to a shorter timeframe to see more detail.

To think about gold prices correctly, you need to combine reading charts with studying economic factors. It’s not just about looking at candlesticks and guessing. You should follow global economic news, inflation data, Fed meetings, oil prices, and geopolitical situations.

If you’re just starting to trade, choose a platform that’s easy to use and offers a free demo account. Practice your strategies with virtual money first. Don’t jump into real trading until you’re confident, because trading involves risk.