How to Survive Gold Volatility During News Events?

Hello Traders!
Gold is one of the most volatile instruments in the market, especially during big news events like US Fed announcements, inflation data, or geopolitical updates.
Many traders either get stopped out too early or end up chasing wild moves.
So how do you survive and trade smartly when gold becomes unpredictable? Let’s break it down.

1. Understand Why Gold Reacts So Much
Gold is directly linked to the US dollar, interest rates, and global fear sentiment.
Whenever important data comes out, traders across the world hedge positions using gold, which creates sudden spikes in volatility.

2. Avoid Trading Before the News

• Gold often becomes choppy 15–30 minutes before a major event.
  
  
• Liquidity dries up, spreads widen, and stop losses get hunted.
  
  
• The safest choice is to wait until the news is released and the first move settles.
  

3. Reduce Position Size

• Instead of trading big lots, cut down your size during news events.
  
  
• This reduces emotional stress and allows your stop loss to be wider.
  
  
• Remember, survival is more important than chasing one big move.
  

4. Use Wider Stop Loss with Strict Risk Control

• Gold can spike $5–10 within seconds during news.
  
  
• Place your stop a little further than usual, but never risk more than your planned % of capital.
  
  
• Risk control matters more than perfect entries during such events.
  

5. Focus on the Second Move

• The first spike after news is often a trap, institutions trigger stops and grab liquidity.
  
  
• The real direction usually appears in the second move once the market digests the data.
  
  
• Patience gives you better entries.
  

Rahul’s Tip:
Treat gold news events as opportunities for learning, not quick profits.
If you’re not confident, it’s perfectly fine to sit out, no trade is also a strategy.

Conclusion:
Gold volatility during news events can be dangerous if you chase blindly, but manageable if you plan well.
By reducing size, waiting for confirmation, and focusing on survival first, you can turn chaos into clarity.
This Educational Idea By TraderRahulPal (TradingView Moderator) | More analysis & educational content on my profile

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