Trading gold on the forex stock market

Question

I want to know if trading gold on the forex stock market is allowed?

From my understanding... You are buying shares of gold that is in a gold bullion (equivalent to a shop). Gold prices fluctuate so you can either buy or sell gold daily... This gives u a profit/loss and you get your money daily. To know whether gold price is going to go up or down, careful market analysis is done daily to see where the support and resistance levels on the chart are. (So it's not really a guess or gamble if you read the charts according to what you learnt). The only time the market is unpredictable is when news events are on. Then the gold price does not follow the analysis (as business is unpredictable as well).

I've heard that in order for it to be halaal, a physical exchange has to be done. But with today's technology, no physical exchanges actually do happen. Everything gets done digitally.

So if physical exchange is a must, then are ALL investments haraam? Like the cattle investment, cattle feeding scheme investment, property investment and shares in big companies? Please advise

Mufti Ebrahim Salejee · Accepted Answer

The precondition for the sale of movable items is that the seller must take possession of it before selling it. If it is sold without taking possession then such a sale is invalid. Further, if you have purchased an item or a share in an item and people have been appointed to directly deal on your behalf in your share, then after they have taken possession of your share, you may instruct them to sell it for you.

And Allah Ta'ala (الله تعالى) knows best.

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