How to Trade: The Execution Playbook
Trading Gold is not like Nifty. Follow this exact sequence to avoid slippage.
Step 1: The Search Keywords
Go to your Broker (Zerodha/Angel/Upstox) and type exactly:
- For 1kg Big Lot: Type "GOLD FUT"
- For 10g Lot: Type "GOLD10 FUT" or "GOLD TEN"
- For 8g Lot: Type "GOLDGUINEA FUT"
- For 1g Lot: Type "GOLDPETAL FUT"
Step 2: The Month Selection (Crucial)
You will see multiple months (e.g., FEB, APR, JUN).
The Rule: Only trade the NEAREST expiry.
Why? 90% of liquidity is in the front month. If you trade the April contract in February, the "Bid" might be ₹1,42,000 and "Ask" ₹1,42,500. That ₹500 gap is an instant loss.
Step 3: The "Limit Order" Mandate
NEVER use Market Orders on Gold Petal/Guinea.
These small contracts are often traded by algorithms. A "Market Buy" might fill you at a freak high price.
Correct Way: Look at the "Ask" price (e.g., 14,205). Place a LIMIT ORDER at 14,205. Wait for it to fill.
The Professional Setup (Expanded)
You cannot trade MCX Gold by looking at the MCX Chart alone. You need the "Source Code".
1. Charting: The Tri-Screen Setup
On your TradingView layout, open these 3 tickers side-by-side:
- Chart A: XAUUSD (OANDA): The "Father". Global Spot Gold in Dollars. Technical levels work here, NOT on MCX.
- Chart B: USDINR (FX_IDC): The "Multiplier". If Rupee falls (Chart goes UP), MCX Gold goes UP automatically.
- Chart C: GOLD1! (MCX): The "Execution". Use this only to see Volume and enter the trade.
2. The Expanded News Radar
Gold reacts to Macro Data. Here are the Top 4 Credible Sources you must track:
| Source | What to Track | Why? |
|---|---|---|
| ForexFactory.com | Red Folder Events (CPI, NFP, FOMC) | Fastest calendar for US Economic Data. If Data > Forecast, Gold usually drops. |
| FedWatch Tool (CME) | Rate Hike Probabilities | The "Bible" for Interest Rates. If probability of a Rate Cut rises, Gold flies. |
| Gold.org (WGC) | Central Bank Demand | Monthly reports on how much gold China/India/Russia are buying. This sets the long-term floor. |
| Kitco News | Miner Sentiment | Specific news on gold supply chains and strikes in mining regions (South Africa/Peru). |
Twitter (X) Fast Feeds
For breaking news (War/Fed Speeches), follow these handles:
- @WalterBloomberg (Fastest headlines)
- @GoldTelegraph_ (Macro Gold trends)
- @FinancialJuice (Live voice squawk)
Analysis: Decoding the Metal
Fundamental Drivers (The "Why")
| Driver | Impact | Why? |
|---|---|---|
| US Dollar (DXY) | Inverse | If DXY goes UP, Gold goes DOWN. |
| Real Yields (US 10Y) | Inverse | If Bonds pay 5%, big money sells Gold (0% yield). |
| Geopolitics | Direct | War = Fear = Gold Buying. |
| USD-INR | Direct | Weak Rupee = Higher MCX Price. |
Technical Indicators (Visualized)
Gold respects these 5 specific setups. Here is how to spot them.
The Logic: Gold consolidates during the European morning. Smart money waits for the London PM Fix (5:00 PM IST).
Trade: Mark the High/Low of 12-4 PM. Enter ONLY when a big volume candle breaks this box after 5 PM.
The Logic: Gold makes a Higher High (New Price Record), but RSI makes a Lower High (Momentum is dying).
Trade: This is a classic "Trap". Look to Short at the next resistance.
| Price | OI Change | Meaning |
|---|---|---|
| UP ⬆ | UP ⬆ | Long Build Up (Strong Bullish) |
| UP ⬆ | DOWN ⬇ | Short Covering (Weak Bounce - Exit) |
| DOWN ⬇ | UP ⬆ | Short Build Up (Strong Bearish) |
Where to check: Sensibull or your Broker's Option Chain (Works for Futures too).
The Logic: Gold algorithms love buying the "Golden Pocket" retracement (0.618).
Trade: Draw Fib from Swing Low to Swing High. Place Buy Limit orders exactly at the 61.8% line.
The Logic: The ultimate trend filter.
Rule: Price above 200 EMA = Buy Dips only. Price below 200 EMA = Sell Rallies only. Never trade against this line on the 4H chart.
Proven Gold Strategies
Actionable setups you can trade tomorrow.
Strategy 1: The "London Fix" Breakout
Logic: London banks set the benchmark price at ~3:00 PM GMT (~8:30 PM IST).
Setup:
1. Wait for 6:00 PM IST (US Open). Volatility kicks in.
2. Mark the High/Low of the 5:30-6:00 PM candle.
3. Enter on the break of this range with volume.
4. Target: 1:2 Risk-Reward.
Strategy 2: The "Rupee Arbitrage"
Logic: MCX Gold = Spot Gold ($) × USDINR.
Setup:
1. Global Gold ($) is flat.
2. USDINR chart breaks out above resistance (Rupee crashing).
3. Action: BUY Gold Petal. Currency depreciation forces price up.
Strategy 3: The "Friday Profit Booking"
Logic: Hedge funds close positions before the weekend to avoid war risk.
Setup: If Gold has rallied Mon-Thu, watch for a sharp drop on Friday after 8 PM IST.
Action: Scalp Short for 15-20 mins.
ETF vs. Futures: The Deep Comparison
It's not just about preference; it's about Tax & Leverage.
Gold ETF (GOLDBEES)
- Type: Delivery (Equity).
- Leverage: None (1x).
- Expiry: None.
- Shorting: Not possible overnight.
- Taxation: LTCG 12.5% (>1yr).
- Best For: SIP / Investing.
Gold Future
- Type: Derivative (F&O).
- Leverage: 10x (Margin).
- Expiry: Monthly.
- Shorting: Yes.
- Taxation: Business Income (Slab).
- Best For: Trading / Income.
Taxation & Charges Showdown (2026 Rules)
| Scenario | Gold ETF | Gold Future |
|---|---|---|
| Profit of ₹1 Lakh | Taxed at 12.5% (after 1 yr) | Added to Salary (Taxed at 30% if high income) |
| Losses | Can only set off against Capital Gains | Can set off against Other Business Income (Section 43(5)) |
| Hidden Costs | Expense Ratio (~0.5% per year) | Rollover Cost (Spread loss every 2 months) |
Frequently Asked Questions (FAQs)
Q1: Can I take physical delivery from a Gold ETF?
No. Gold ETFs are cash-settled units. If you want physical gold, you must sell the ETF units and buy from a jeweler. Alternatively, Sovereign Gold Bonds (SGB) offer redemption in gold price + interest.
Q2: Can I pledge Gold ETFs for margin trading?
Yes! This is a "Pro" trick. You can buy GoldBees (Invest), Pledge them (get 90% margin), and use that margin to trade Futures Intraday. You earn Gold appreciation + Trading profits.
Q3: Why is Gold Future price different from ETF price?
Futures trade at a "Premium" (Contango). It includes the cost of interest and storage. ETF tracks the Spot price. At expiry, Future price falls to match Spot price.
Welcome to the big leagues: a guide on Gold trading, mastering Gold 10, Gold Guinea, and Gold Petal.
If you are reading this, you have likely looked at the Gold price on CNBC, hovering around ₹1,42,000 per 10 grams, and felt a mix of awe and fear. A few years ago, Gold was an asset you bought for a wedding. Today, it is the most volatile, aggressive, and profitable trading instrument in the Indian market.
But there is a problem. Most new traders are still trying to trade Gold like it’s 2020. They open their broker app, search for “GOLD,” see a margin requirement of ₹14 Lakhs, and immediately close the app. They assume Gold trading is only for the ultra-rich.
They are wrong.
The Multi Commodity Exchange (MCX) has democratised gold trading. You don’t need Lakhs. You need as little as ₹1,500.
This guide is the written companion to the interactive Finminutes masterclass tool above. We are going to strip away the jargon and teach you how to trade Gold Petal, Gold Guinea, and Gold Ten (10g). We will decode the specific Gold Trading Strategies that institutional desks use to hunt retail stop losses, and we will show you how to build a monthly income stream from the yellow metal.
Let’s enter the vault.
The New Landscape: Why “Gold Mini” is Dead
For a decade, the “Gold Mini” (100g contract) was the favourite of the Indian middle-class trader. It was the perfect size, not too big, not too small.
Then came the Super-Cycle of 2025-2026. With Gold doubling in price, the “Mini” contract is now worth over ₹14 Lakhs. The margin required to trade just one lot has crossed ₹1.5 Lakhs. For a retail trader with a ₹50,000 account, the Mini is mathematically impossible to trade safely. If you take a trade with high leverage, a 1% fluctuation (which happens in minutes) will wipe out 30% of your capital.
The Rise of “Micro” Gold
To survive, MCX, the market, adapted. Liquidity shifted downstream. The volume that used to be in the Mini contract has migrated to the Gold Guinea (8g) and Gold Petal (1g). If you want to survive in 2026, you must stop looking at the 1kg or 100g charts. You need to become a master of the micro-lots.
Know Your Weapons: Gold Petal vs. Gold Guinea
Choosing the wrong contract is the #1 reason beginners lose money before the chart even moves. Let’s break down your actual options.
1. Gold Petal: The Scalper’s Sniper
Think of Gold Petal as the “Penny Stock” of the commodity world, but with the stability of a global asset.
- The Size: 1 Gram. Yes, just one gram.
- The Math: If Gold is ₹1,42,000/10g, then 1g is ₹14,200.
- The Margin: Your broker will ask for roughly 10%, which is ₹1,420.
- The Secret Power: Because the margin is so low, you can use “Scale-In” strategies. Instead of betting your whole account on one entry, you can buy 1 Petal at Support 1, another at Support 2, and another at Support 3. This “averaging” capability makes Petal the safest instrument for learning.
2. Gold Guinea: The Investor’s Trap?
This contract is based on the British Sovereign coin, weighing roughly 8 grams.
- The Margin: Approx ₹11,500.
- The Warning: Gold Guinea suffers from what we call “Liquidity Gaps.”
- The Scenario: You want to buy at the market price. The Last Traded Price (LTP) is ₹60,000. But because there are fewer participants, the cheapest seller is sitting at ₹60,050.
- The Result: You instantly lose ₹50 (slippage) the moment you click buy.
- Verdict: Trade Gold Guinea only if you are holding for days (Swing Trading). Do not use it for 5-minute scalping. The spread will eat your profit.
Execution: How to Avoid “The Delivery Trap”
This is the part that isn’t taught in YouTube videos. Gold contracts on MCX are Compulsory Delivery.
In the stock market (Nifty), if you forget to close your position on expiry day, it just cash settles. No problem. In Commodities, if you hold a Gold Future into the expiry window, the exchange assumes you want to buy the actual physical gold bar.
The “Tender Period” Nightmare
5 days before the contract expires, MCX activates the “Tender Period.” If you are holding a Long position:
- Your margin requirement shoots up from 10% to 25%, then 50%, then 100%.
- If you don’t have the cash, your broker will penalty square off your trade. This penalty is massive.
The Golden Rule of Execution: Look at the Expiry Date of your contract. Set an alarm on your phone for 7 days before that date. On that day, close your current month’s trade and open a new trade in the next month. This is called “Rolling Over.” Never, ever mess with the expiry week.
The “Shadow Price” Concept
To trade Gold successfully, you need to understand that MCX Gold is a liar. The price you see on your Indian broker terminal is not the real price of gold. It is a derivative calculation.
The Formula:
MCX Gold = (International Spot Gold × USDINR Rate) + Import Duty
Why This Matters for Your Strategy
Imagine International Gold (XAUUSD) is flat. It hasn’t moved a cent. But suddenly, the US Dollar gets stronger, and the Indian Rupee crashes by 50 paise. Result: MCX Gold will shoot up by ₹400-₹500.
The “Rupee Arbitrage” Trade: This is one of the highest-probability Gold Trading Strategies.
- Open the USDINR chart on TradingView.
- If you see a massive green candle (Rupee weakening) breaking a resistance level.
- Blindly Buy Gold Petal.
- You don’t even need to look at the Gold chart. The math forces the gold price up. You are essentially trading the currency war using gold as your vehicle.
Institutional Gold Trading Strategies
Retail traders rely on RSI and MACD. Institutional traders rely on Time and Liquidity. Here are the three specific setups detailed in the module above.
Strategy 1: The “London Fix” (5:00 PM IST)
Gold is a global asset. It sleeps when India wakes up. From 9:00 AM to 3:00 PM IST, Gold usually drifts sideways in a boring range. This is the “Retail Trap Zone.”
At 3:00 PM London time (roughly 8:30 PM IST), major banks set the benchmark price for gold. However, the pre-game volatility starts at 5:00 PM IST (when European traders return from lunch and US traders wake up).
- The Setup: Draw a box around the price action from 12:00 PM to 4:00 PM.
- The Trigger: Wait for a candle to close outside this box after 5:00 PM.
- The Trade: Follow the breakout. This move usually lasts until midnight.
Strategy 2: The “Volume Shelf” Reversal
Gold respects “Volume Nodes”, prices where a lot of business has happened in the past.
- The Tool: Use the “Fixed Range Volume Profile” tool on TradingView.
- The Logic: If Gold crashes down into a high-volume node (a “Shelf”), it will almost always bounce. Why? Because institutions have accumulated positions there. They will defend that price.
- The Trade: Place a “Buy Limit” order at the top of the Volume Shelf. Do not chase the price; let it come to you.
Fundamental Analysis: The “Red Folder” Events
You cannot trade Gold using technicals alone. A single speech by the US Federal Reserve Chairman can destroy a perfect “Head and Shoulders” pattern in seconds.
You must check the Economic Calendar (ForexFactory) every morning. Look for these killers:
- CPI (Inflation) Data: Gold hates high interest rates. If Inflation is high, the Fed raises rates, and Gold crashes. If Inflation is cooling down, Gold flies.
- NFP (Jobs) Data: Released the first Friday of every month. This is the most volatile 5 minutes in the market. Rule: Do not have an open position during NFP release (usually 6:00 PM or 7:00 PM IST). The slippage can be 100+ points.
- Geopolitics: This is the wildcard. If news breaks about a missile strike in the Middle East, Gold will spike vertically. This is “Safe Haven” buying. If you are Short, you will be liquidated. Always maximise your stop loss during geopolitical tension.
Gold ETF vs. Gold Futures: The Tax Reality
We get asked this question daily: “Why should I trade Futures? Why not just buy GoldBees ETF?”
The answer lies in Taxation and Leverage.
1. The Leverage Factor: To buy ₹14,000 worth of Gold ETF, you need ₹14,000 cash. To buy ₹14,000 worth of Gold Petal (Future), you need ₹1,500 cash. Futures allow you to control a larger asset base with smaller capital. This magnifies profits (and losses).
2. The Tax Loophole (Section 43(5))
- ETF Profits: Treated as Capital Gains.
- Futures Profits: Treated as Business Income.
- The Advantage: If you trade Futures, you can deduct your “business expenses” from your profit before paying tax. Your internet bill, your advisory fees, and even a portion of your laptop depreciation can be deducted. You cannot do this with ETFs.
Frequently Asked Questions (FAQs)
What is the best time to trade Gold in India?
The “Golden Hours” are from 6:00 PM to 10:00 PM IST. This is when the US Market (NYMEX) opens. 70% of the daily volume happens in this window. Avoid trading between 11:00 AM and 3:00 PM; the volume is too low, and you will get chopped out.
Can I hold a Gold Petal position overnight?
Yes, you can. However, be aware of “Gap Risk.” Since Gold trades globally while you sleep, if news breaks in the US overnight, the MCX market might open the next morning with a massive gap up or down, skipping your Stop Loss. For beginners, it is safer to close positions before 11:30 PM.
Is Gold Petal liquid enough? Will I get stuck?
In 2026, Gold Petal is highly liquid. The daily turnover is in Crores. However, always use Limit Orders. Do not blindly press “Market Buy.” The bid-ask spread is usually ₹1, which is very tight and acceptable for trading.
How do I calculate the profit on 1 lot of Gold Petal?
It’s simple. The lot size is 1 gram. If you buy at ₹7,100 and sell at ₹7,150: Profit = (Sell Price – Buy Price) * Lot Size Profit = (7150 – 7100) * 1 = ₹50. If you trade 10 lots (equivalent to 10g), your profit is ₹500.
What technical indicators work best for Gold Trading?
Gold is a trending asset. It respects:
– 200 EMA (4-Hour Chart): For identifying the major trend.
– RSI (14): For spotting divergences (reversals).
– Fibonacci 61.8%: For buying dips. Avoid using too many indicators. Price action + Volume is usually enough.
Final Words: Respect the Metal
Trading Gold Petal, Guinea, or Gold Ten offers a fantastic opportunity to build wealth outside the stock market. It diversifies your risk and allows you to profit from global macroeconomics.
But remember: Leverage is a double-edged sword. Study well, start small. Trade one single Petal lot for a month. Prove to yourself that you can be profitable with a ₹1,500 margin before you scale up to the ₹14 Lakh contracts.
Use the tool above to check the real-time specs, set up your charts, and execute your first trade with confidence. See you on the leaderboard.