BullsEdges algo trading guide: Gold trades almost 24 hours, but not every hour is the same. Learn how volatility, spread and behaviour change across the Asian, London and New York sessions.
Gold trades from Monday morning in Asia until Friday evening in New York, with a short daily break around the broker's rollover. But the character of the market changes completely across the day.
BullsEdges algo trading application: Compare results by session rather than assuming that profitable London settings will work equally well during Asia or New York.
The Asian session
From roughly 00:00 to 08:00 GMT, Tokyo, Shanghai, Hong Kong and Singapore are active. Gold usually trades in tighter ranges. There are exceptions - Chinese physical demand, Asian central bank news or weekend headlines can move it - but on most days the Asian session is the quietest.
For strategies: range and mean-reversion systems often do better here. Breakout systems see more false starts.
The London session
London opens around 07:00-08:00 GMT and brings the largest liquidity of the day. Ranges built in Asia are often broken in the first hours of London. The LBMA gold price auctions, at 10:30 and 15:00 London time, can also create short bursts of activity.
For strategies: breakouts of the Asian range are a classic London setup. Spreads are usually at their tightest.
The New York session
From about 12:00-13:00 GMT, US traders arrive. This overlap with London is the most volatile part of the day. Most of the important US data - jobs, inflation, ISM - is released at 8:30 or 10:00 New York time. The US stock market opens at 9:30 New York time.
For strategies: this is where trend days start and where news spikes happen. Many automated systems pause around 8:30 and 10:00 New York time.
The late US and rollover
After London closes, activity fades. Near the broker's daily rollover - 5 p.m. New York time, which is midnight on many brokers' server clocks - liquidity is thin and spreads can widen sharply for several minutes.
For strategies: avoid opening new positions around rollover. A tight stop or take-profit can be hit purely by the spread.
Time zones are the trap
Your broker's server time, your local time and GMT are usually all different, and they shift with daylight saving in the US and Europe. When you set session filters in an EA, check:
- Which clock the EA uses (server time is most common).
- Your broker's offset from GMT, and whether it changes in summer.
- That the filter still lines up after the clocks change in March and November.
BullsEdges takeaway for algo trading
Know which session your strategy is designed for. A system tested on London breakouts will behave very differently if it is left running through the Asian range and the US news hours.
Trading forex and gold carries a high level of risk and may not be suitable for every investor. Past performance and backtests do not guarantee future results. This article is education, not financial advice.