Gold Measurements Troy Ounce, Tolah and Karat
Definition of a ”Troy” Ounce
A “troy” ounce (ozt) is a unit of imperial measure for weight that dates back to the Middle Ages. Originally used in Troyes, France, it is most commonly used to gauge the weight and therefore the price of precious metals.
1 Troy Ounce approx: 31.103gram
Tolah or tole, South Asian unit, The tola formed the base for units of mass under the British Indian system of weights and measures introduced in 1833, and was also the standard measure ofgold and silver bullion.[1] Although the tola has been officially replaced by metric units since 1956,[8] it is still in current use, and is a populardenomination for gold bullion bars in Bangladesh, India,Nepal,Pakistan Singapore, United Arab Emirates and Cooperation Council for the Arab States of the Gulf (GCC) countries. Now standardised as11.664 grams or exactly 3/8 troy ounce. 1 kilogram is equal to 1000 grams, or 80 tola [Pakistan]
The carat or karat (symbol: K or kt) is a unit of purity for goldalloys.
a measure of the fineness (represent the purity) of Gold and precious metals expressed in parts per thousand.
>24 K = 99.9% Pure (European Marking Fineness 999)
>22 k mean 22 parts of pure and 2 parts are impure ( mixed other metal) or 91.6% pure (European Marking Fineness 917)
>21 k mean 3 parts impure or 87.5% pure
>18 K = 75% Pure (European Marking Fineness 750)
22 k Rate Formula
Rate 24k divided by 24=Rate 1k multiple 22=Rate22k
Pivot point, Resistance and Support levels
Pivot points are very useful tools that use the previous bars' highs, lows and closings to project support and resistance levels for future bars. Daily pivot points are useful for swing trading. Longer term pivot points provide an idea of where key support and resistance levels should be. Place the pivot points on your charts and see how traders appear to give pivot point levels a lot of respect.
Formula,
Technical Analysis (Introduction)
Technical analysis is the study of past price and activity history from charts in order to predict future price movements. The art of technical analysis is to identify patterns in price movements that will then dictate where that market is moving to in the future. It must be remembered and more importantly understood that the market is not just a number of shares of different companies moving in one direction or another. The market is a number of human beings moving the price of those shares in one direction or another. People make the market change, when they demand more of one share or less of another. This is what moves the price. One may feel that a share price in an individual company has gone up because it has posted a large gain in profits that year. It hasn’t. The price of the share has gone up because based on that profit news more people wanted to buy that share. The human beings demanding that share have forced the price up. This concept is crucial to your understanding of technical analysis.Human nature remains more or less constant and tends to react to similar situations in consistent ways. By studying the nature of previous market turning points, it is possible to identify certain patterns to develop an understanding of where the market is going to move in the future. Technical analysis therefore is based on the assumption that people will continue to make the same mistakes that they made in the past. Human relationships are extremely complex and never repeat in identical combinations. The markets, which as explained are a reflection of people in action, never duplicate their performance exactly, but the recurrence of similar characteristics is sufficient to enable market watchers to identify major junction, or turning points.Philosophy/Rational behind technical analysisThere are three premises on which technical analysis is based:
Fundamantal Analysis (Introduction)
Fundamental Analysis is the study of any data that might be expected to impact the price or perceived value of an investment product, other than analyzing the trading patterns of that stock itself. Fundamental analysis is the examination of the underlying forces that affect the well being of the economy, industry groups, and companies. As with most analysis, the goal is to derive a forecast and profit from future price movements.At the company level, fundamental analysis may involve examination of financial data, management, business concept and competition.At the industry level, there might be an examination of supply and demand forces for the products offered. For the national economy, fundamental analysis might focus on economic data to assess the present and future growth of the economy. By believing that prices do not accurately reflect all available information, fundamental analysts look to capitalize on perceived price discrepancies.Interest rates for example, are considered the single most important economic factor determining the exchange rates of currencies. One reason for this is that large multinational investors would prefer to hold a bank account in the currency that yields the highest return in terms of interest, all other things being equal. Inflation is one of the key factors in deciding the level of interest rates. For this reason any financial data released that will affect interest rates or inflation is of great importance to a trader, as it will offer trading opportunities as the market re-values itself.
Risk Warning : Gold, Silver and Oil are leveraged products and involves a high level of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risk involved. You should ensure you understand all of the risks and seek independent advice if necessary.
A “troy” ounce (ozt) is a unit of imperial measure for weight that dates back to the Middle Ages. Originally used in Troyes, France, it is most commonly used to gauge the weight and therefore the price of precious metals.
1 Troy Ounce approx: 31.103gram
Tolah or tole, South Asian unit, The tola formed the base for units of mass under the British Indian system of weights and measures introduced in 1833, and was also the standard measure ofgold and silver bullion.[1] Although the tola has been officially replaced by metric units since 1956,[8] it is still in current use, and is a populardenomination for gold bullion bars in Bangladesh, India,Nepal,Pakistan Singapore, United Arab Emirates and Cooperation Council for the Arab States of the Gulf (GCC) countries. Now standardised as11.664 grams or exactly 3/8 troy ounce. 1 kilogram is equal to 1000 grams, or 80 tola [Pakistan]
The carat or karat (symbol: K or kt) is a unit of purity for goldalloys.
a measure of the fineness (represent the purity) of Gold and precious metals expressed in parts per thousand.
>24 K = 99.9% Pure (European Marking Fineness 999)
>22 k mean 22 parts of pure and 2 parts are impure ( mixed other metal) or 91.6% pure (European Marking Fineness 917)
>21 k mean 3 parts impure or 87.5% pure
>18 K = 75% Pure (European Marking Fineness 750)
22 k Rate Formula
Rate 24k divided by 24=Rate 1k multiple 22=Rate22k
Pivot point, Resistance and Support levels
Pivot points are very useful tools that use the previous bars' highs, lows and closings to project support and resistance levels for future bars. Daily pivot points are useful for swing trading. Longer term pivot points provide an idea of where key support and resistance levels should be. Place the pivot points on your charts and see how traders appear to give pivot point levels a lot of respect.
- Daily pivots are calculated from previous day's high, low, close
- Weekly pivots are calculated from previous week's high, low, close
- The pivot levels and charts are updated throughout the day to cater for data adjustments during the day.
Formula,
- Res3 = H + 2*(P-L)
- Res2 = P + (Res1-Sup1)
- Res1 = 2 * P - L
- Pivot Point = ( H + C + L ) / 3
- Sup1 = 2 * P - H
- Sup2 = P - (Res1-Sup1)
- Sup3 = L - 2*(H-P)
Technical Analysis (Introduction)
Technical analysis is the study of past price and activity history from charts in order to predict future price movements. The art of technical analysis is to identify patterns in price movements that will then dictate where that market is moving to in the future. It must be remembered and more importantly understood that the market is not just a number of shares of different companies moving in one direction or another. The market is a number of human beings moving the price of those shares in one direction or another. People make the market change, when they demand more of one share or less of another. This is what moves the price. One may feel that a share price in an individual company has gone up because it has posted a large gain in profits that year. It hasn’t. The price of the share has gone up because based on that profit news more people wanted to buy that share. The human beings demanding that share have forced the price up. This concept is crucial to your understanding of technical analysis.Human nature remains more or less constant and tends to react to similar situations in consistent ways. By studying the nature of previous market turning points, it is possible to identify certain patterns to develop an understanding of where the market is going to move in the future. Technical analysis therefore is based on the assumption that people will continue to make the same mistakes that they made in the past. Human relationships are extremely complex and never repeat in identical combinations. The markets, which as explained are a reflection of people in action, never duplicate their performance exactly, but the recurrence of similar characteristics is sufficient to enable market watchers to identify major junction, or turning points.Philosophy/Rational behind technical analysisThere are three premises on which technical analysis is based:
- History Repeats Itself
- Prices Move In Trends
- Market Action Discounts Everything
Fundamantal Analysis (Introduction)
Fundamental Analysis is the study of any data that might be expected to impact the price or perceived value of an investment product, other than analyzing the trading patterns of that stock itself. Fundamental analysis is the examination of the underlying forces that affect the well being of the economy, industry groups, and companies. As with most analysis, the goal is to derive a forecast and profit from future price movements.At the company level, fundamental analysis may involve examination of financial data, management, business concept and competition.At the industry level, there might be an examination of supply and demand forces for the products offered. For the national economy, fundamental analysis might focus on economic data to assess the present and future growth of the economy. By believing that prices do not accurately reflect all available information, fundamental analysts look to capitalize on perceived price discrepancies.Interest rates for example, are considered the single most important economic factor determining the exchange rates of currencies. One reason for this is that large multinational investors would prefer to hold a bank account in the currency that yields the highest return in terms of interest, all other things being equal. Inflation is one of the key factors in deciding the level of interest rates. For this reason any financial data released that will affect interest rates or inflation is of great importance to a trader, as it will offer trading opportunities as the market re-values itself.
Risk Warning : Gold, Silver and Oil are leveraged products and involves a high level of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risk involved. You should ensure you understand all of the risks and seek independent advice if necessary.