Gold trading · Lesson 4 of 4
Session timing and event risk for gold
4 min read
Draft lesson — under editorial review
Gold trades almost around the clock during the week, but its behaviour changes a great deal depending on the time of day and the economic calendar. Knowing when activity and risk peak helps you decide when to trade.
A nearly 24-hour market
Gold is traded through a global over-the-counter market centred on London, and through futures exchanges, the best known being COMEX in New York. Retail CFD prices are generally based on these markets. On most platforms, gold trades from Sunday evening to Friday evening, with a short daily break, often around the end of the US trading day. Exact hours vary by provider, so check your platform.
The three main sessions
Times below are given in UK time for most of the year. Clocks in the UK and US change on different dates in spring and autumn, so for a few weeks a year the gap between London and New York is one hour shorter than usual. Convert to your own time zone, for example Gulf Standard Time is three or four hours ahead of UK time depending on the season.
| Session | Approximate UK time | Typical gold behaviour |
|---|---|---|
| Asian | 00:00 to 08:00 | Often quieter; activity from Asian buyers and markets such as Shanghai |
| London | 08:00 to 17:00 | Liquidity rises; London is the centre of the physical market |
| New York | 13:00 to 22:00 | Active, especially the overlap with London and around US data |
The London and New York overlap, roughly 13:00 to 17:00 UK time, is usually the most liquid part of the day. Spreads tend to be tighter, but moves can also be larger because US economic data is released during this window.
The LBMA Gold Price, a benchmark price set by auction in London twice each business day, at 10:30 and 15:00 London time, is another moment that some market participants watch.
Scheduled US events
Because gold is priced in dollars and is sensitive to real interest rates, US economic news often moves it sharply. Events to watch on the economic calendar include:
- Employment report (non-farm payrolls). Usually on the first Friday of the month, at 08:30 New York time, which is 13:30 UK time for most of the year.
- Consumer price inflation (CPI). Monthly, also usually at 08:30 New York time.
- Federal Reserve rate decisions. The Federal Open Market Committee meets eight times a year. The statement is released at 14:00 New York time, usually 19:00 UK time, followed by a press conference.
- Speeches by Federal Reserve officials, especially the Chair, which can shift expectations for interest rates.
Results that change expectations for US interest rates or the dollar tend to produce the biggest reactions. The direction is never certain in advance.
What happens around news
In the minutes around a major release:
- Spreads widen, sometimes many times their normal level.
- Liquidity thins, so prices can jump rather than move smoothly.
- Slippage becomes more likely: stop and market orders can fill at worse prices than requested.
- Whipsaws are common, with a sharp move in one direction quickly reversing.
Many traders choose not to open new positions in the 15 to 30 minutes before a major release, or reduce position size if they hold a trade through it.
Weekend gaps
When the market closes on Friday evening, news can continue to break. If something significant happens over the weekend, gold may reopen on Sunday evening at a very different price, a gap. A stop-loss cannot fill at a price the market never trades, so it will fill at the first available price.
Worked example: a weekend gap
You hold 0.20 lots of gold (20 oz on a 100 oz contract) on a 20,000 USD account. Your stop is 10.00 USD below your entry, so your planned risk is 200 USD, or 1%.
Over the weekend, an unexpected event causes gold to reopen 25.00 USD below your entry price, well past your stop.
- Loss = 20 oz × 25.00 USD = 500 USD, or 2.5% of the account rather than the 1% you planned.
This is why some traders close or reduce positions before weekends, especially at times of heightened geopolitical tension. Market holidays and the end of the year can also bring thin liquidity and erratic moves.
A simple pre-session checklist
- Check the economic calendar for high-impact US events today.
- Note the time of each release in your own time zone.
- Decide in advance whether you will be flat, reduced or holding through each event.
- On Fridays, decide whether any open positions should be held over the weekend.
Key takeaways
- Gold trades nearly 24 hours on weekdays, but activity is usually highest during the London and New York sessions and their overlap.
- US data such as payrolls and CPI, and Federal Reserve decisions, often cause sharp moves in gold.
- Around major news, spreads widen, liquidity thins and stops can slip.
- Weekend gaps can push losses well beyond your planned risk, as in the 2.5% example.
- Use the economic calendar to plan ahead, and convert all event times to your own time zone.
Educational content only — not financial advice. Trading leveraged products such as forex and CFDs carries a high risk of losing money.