We’re thrilled to announce that FXTM is adding seven metal crosses – XAU/JPY, XAU/CNH, XAU/GBP, XAU/AUD, XAG/AUD, XAG/EUR and XAG/JPY – to its already extensive list of precious metals trading choices.

Precious metal crosses allow traders to embark on their gold and silver trading journey with their preferred currency, rather than having to convert to US dollars. By enriching our offerings with seven new cross pairs, we are opening fresh avenues for traders to gain exposure to precious metals.

Let's dive a little deeper into what these new instruments have to offer.

Understanding metal crosses

Often, when we think about trading gold or silver, we think about buying against the US dollar. XAU/USD or XAG/USD.

This means that traders who wish to include precious metals in their portfolios must first exchange their domestic currency with the greenback - tying it solely to the relative strength of the US dollar.

Metal crosses eliminate this additional step and allow you to gain exposure to precious metals with your preferred currency. This can be considered similar to trading currency crosses, where two currencies are traded directly against each other without converting either one into US dollars first.

Trading XAU/AUD or XAG/JPY means you trade the relative value of gold or silver against the relative value of the Australian dollar or Japanese yen, respectively.

Here, the precious metal acts like the base currency, and the currency involved becomes the quote currency. Therefore, gold vs. Australian dollar (XAU/AUD) is the price paid for one ounce of gold in AUD.

Why are metal crosses popular?

A key driver behind metals markets is BRICS.

BRICS is a international organisation of 10 countries (Brazil, Russia, India, China, South Africa, Egypt, Ethopia, Indonesia, Iran and the UAE) similar to the G7. Today, BRICS members, especially Russia, are pushing to launch a dollar-independent precious metals exchange. This is another step in the bloc’s attempts to de-dollarise global trade.

Having added more nations, BRICS now controls 85% of global commodity trade, well-postioning the group to redefine gold and commodity markets.

Against a backdrop of sanctions imposed by the US and Donald Trump’s latest tariff threats to BRICS nations, central banks are rushing to convert their USD assets into gold. This may lead to higher demand and greater control over the precious metal by BRICS members. Analysts speculate that this indicates that trading gold and silver via metal crosses, instead of USD, may become a norm in the long term.

Advantages of trading metal crosses

Gold and silver outperformed benchmark US indices in 2024. The two metals are poised to exhibit exceptional performance in 2025 as well. 

Due to this many traders are adding them to their portfolios in hopes of potential gains, as long as no unexpected market shocks reverse the trend.

There are several benefits of trading precious metal crosses:

Portfolio diversification

Adding precious metals to your portfolio enables diversification. With Donald Trump 2.0, the precious metal market is set to remain volatile, creating more trading opportunities. This is because a fluctuating dollar gives rise to fear sentiment, attracting traders to safe havens, such as precious metals.

Hedging opportunities

Precious metals work as a hedge against inflation. Inflation erases the purchasing power of currencies. This means having gold in your portfolio instead of fiat currency could preserve the overall portfolio value. 

Metal crosses allow you to consider doing this in your preferred currency, which may amplify the effect.

Broaden market access

Exploring precious metals via currencies other than the USD opens up a wider range of markets for you to explore. While gold and silver are inversely correlated to the greenback, they may perform differently against other currencies. 

For instance, the US Federal Reserve (Fed) plans to keep interest rates steady, while the European Central Bank (ECB) and Bank of England (BOE) are lowering rates. This means that EUR and GBP could remain under pressure, much like precious metals. In such scenarios, trading metal crosses, such as XAU/GBP or XAG/EUR, may offer unique opportunities compared to trading precious metals against the US dollar.

Metal cross price movements

The key to trading metal crosses effectively is understanding the factors that move the pair. Here’s a look at the prominent ones:

Central bank policies

Central bank’s interest rate decisions impact the domestic currency. For instance, if the Fed holds the interest rate steady while the Reserve Bank of Australia (RBA) lowers its rates, the USD will gain strength against the AUD. In this scenario, the XAU/AUD or XAG/AUD could become more attractive than trading XAU/USD.

Geopolitical uncertainty

Precious metals are considered safe havens. Investors are drawn to XAU and XAG to ensure portfolio stability when geopolitical tensions rise. Such risk management measures may boost the demand for precious metals, pushing up the XAU/AUD or XAG/EUR.

USD strength

When the USD strengthens, trading XAU/USD and XAG/USD become more expensive. This lowers the demand for gold and silver and puts downward pressure on the metals. This can lead to interesting opportunities to trade the metals in other currencies,

Currency fluctuations

Even if gold and silver perform well in general, their price in a specific non-USD currency will also depend on that currency's strength or weakness against the USD. For instance, the AUD is a commodity-dependent currency. The World Bank expects the commodities markets to decline in 2025 amid an oil supply glut. If the AUD weakens, gold will be more expensive to purchase in Australian dollars, even if the metal’s price in USD remains stable

Expert-led market analysis can offer useful insights into the impact of currency movements on your chosen metal cross.

Supply and demand

Supply and demand play a crucial role in the commodities sector. Supply constraints drive precious metal prices up while poor demand puts downward pressure on prices. For instance, one of the reasons for the silver rally in 2024 was the continued supply deficit amid rising demand for the metal in the manufacturing of EVs, PV cells and AI chips.

What to remember when you trade precious metal crosses

Economic data releases drive central bank policies, investor sentiment and currency valuations. Therefore, staying updated with GDP growth, employment numbers and inflation reports is crucial. Adding an economic calendar to your trading toolkit can prove beneficial.

Also, capitalise on cutting-edge trading tools to calculate and manage the risks associated with trading metal crosses. Pip, risk, and leverage calculators can help you identify the most suitable position sizes. Tools, such as stop loss and take profit calculators, facilitate order and risk management.

Sign up for free trading education to gain more insights into navigating the precious metal markets.

Tips for trading metal crosses

Both fundamental and technical analysis are crucial in trading metal crosses. While fundamental analysis includes considering macroeconomic factors that move prices, technical analysis involves monitoring historical price moves to make predictions of future price direction. Traders use technical indicators to discover potential trends and reversals and identify entry and exit points.

Strategies for Trading Metal Crosses 

• Trend Following 
• Reversal Trading 
• Breakout Trading

Popular indicators for trading metal crosses

Identifying support and resistance levels is critical to speculating on trend onset, continuation and reversal. It is a good idea to combine relevant technical indicators to make well-informed decisions.

Bollinger Bands

Bollinger Bands are a widely used indicator to identify trends. It comprises three bands – a moving average band, a band representing two standard deviations above the moving average and a band representing two standard deviations below the moving average. 

The middle line indicates the trend, while the upper and bands indicate the volatility in the trend. The distance between the upper and lower bands widens during times of high price volatility and narrows when volatility is low. A narrow channel is also considered to indicate a trend breakout. 

The bounce off from the upper band is taken as a signal to go short and the pricing bouncing off the lower band is considered a signal to open a long position.

Relative Strength Indicator (RSI)

RSI is a popular momentum indicator. It is an oscillator that ranges from 0 to 100 and appears below the price chart. A value of less than 30 indicates an oversold market, while a reading of above 70 indicates overbought conditions. 

During an uptrend, if the RSI falls below the oversold level, it is a potential buy signal. However, if it surpasses the overbought level in an uptrend, it is a signal of a potential reversal. Traders tend to take short positions when this occurs.

Fibonacci Retracements

Fibonacci retracements also identify support and resistance levels. These levels include Fibonacci ratios of 0%, 23.6%, 38.2%, 50%, 61.8% and 100% between a specified price range. This brings up several support and resistance levels in the price range under consideration, offering more opportunities for traders to explore. 

The idea is to identify retracements from a support level during an uptrend and open long positions. During a downtrend, traders wait for a pullback from a resistance level to go short.

Average Directional Index (ADX)

A single indicator is not sufficient to offer decisive market insights. Therefore, traders combine support and resistance indicators with a trend strength indicator, such as the ADX. 

The ADX uses the moving average of expansion or contraction in the price range to quantify the strength of the trend. It is most useful during a trend but not in sideways markets. A reading of below 20 usually indicates a ranging market while a value of over 50 indicate a very strong trend. Values between 20 and 30 are used to confirm trend formation. 

Traders usually avoid entering or exiting trades in this range. This is because the market may be overheated and could correct. When the ADX makes higher peaks, it suggests that trend momentum is increasing, which is a signal to ride the trend. Decreasing peaks indicate that fading trend momentum, which may be a signal of trend reversal or cooling down and traders may exit their positions.

The bottom line

Trading metal crosses offers a way to diversify your portfolios without having to exchange your preferred currency for USD. However, it is important to develop and test your metal cross trading strategy to trade metal crosses by understanding the diverse factors that move prices and employing the right analysis tools. 

Using a practice account to practice and refine your strategy is a great way to learn, boost your confidence and improve the overall trading experience. Explore the precious metal markets with FXTM latest offerings now.