XAUUSD in one sentence
XAUUSD is the price of one troy ounce of gold, quoted in US dollars. If the quote reads 3,500.00, an ounce of gold costs 3,500 dollars at that moment.
The symbol follows the currency-pair convention used in forex: the first code (XAU) is the “base”, the second (USD) is the “quote”. XAU is the ISO 4217 code for gold — precious metals start with X, and AU comes from aurum, Latin for gold.
What you’re actually trading
When most retail traders “trade gold”, they are not buying bars or coins. They are usually trading one of:
- Spot gold or a CFD on gold with a broker — a contract that tracks the gold price, typically leveraged, with no physical delivery.
- Gold futures on an exchange — standardised contracts for future delivery, used by professionals and some retail traders.
- Gold ETFs or mining stocks — exposure through the stock market rather than the XAUUSD symbol.
This site focuses on XAUUSD as it’s traded on retail platforms: spot or CFD gold quoted against the dollar. Because these products are leveraged, you can control a large position with a small deposit — which magnifies both gains and losses.
How a gold quote works
- Bid: the price you can sell at.
- Ask: the price you can buy at.
- Spread: the difference between them — a cost you pay on every trade. It widens during news and quiet hours.
There’s no single “official” spot price for gold at any given moment. Each broker quotes its own bid and ask, based on its liquidity providers. That’s why the price on our XAUUSD price page may differ slightly from your platform.
Lot sizes and what a $1 move means
On many platforms, one standard lot of XAUUSD is 100 troy ounces. So:
- A $1 move in gold ≈ $100 per 1.00 lot
- A $1 move ≈ $10 per 0.10 lot
- A $1 move ≈ $1 per 0.01 lot
Gold can move tens of dollars in a day. A trader holding one lot through a $20 move against them would lose roughly $2,000. Contract sizes differ between brokers, so always check your contract specifications. Our XAUUSD risk management guide shows how to size positions from your stop distance.
When gold trades
Spot gold and gold CFDs typically trade almost 24 hours a day from Sunday evening to Friday evening (New York time), with a short daily break that varies by broker. Activity is uneven:
- Asian session: often quieter, narrower ranges.
- London session: liquidity rises sharply; frequently sets early highs or lows.
- New York session: overlap with London plus major US data — usually the most volatile window.
Read London vs. New York sessions for more detail.
What moves the price of gold
Gold doesn’t pay interest or dividends, so its price is driven by changing demand to hold it. The main drivers are:
- The US dollar — gold is priced in dollars.
- Real interest rates — the opportunity cost of holding a non-yielding asset.
- Federal Reserve policy — expectations for rates drive both of the above.
- Inflation expectations and economic data.
- Safe-haven demand during geopolitical or financial stress.
- Central-bank purchases, ETF flows and physical demand.
We cover each in depth in what moves gold prices.
Why traders like XAUUSD — and why it’s hard
Traders are drawn to gold’s liquidity, clear reactions to macro news and large intraday ranges. The same features create risk: fast moves around data, false breakouts at session opens, wide spreads at the wrong moment, and the temptation to over-size positions because of leverage.
What to learn before trading gold
- Risk management and position sizing — before any strategy.
- Market structure and key levels — see the strategy hub.
- Session behaviour and the economic calendar.
- A written trading plan — see how to build a trading plan for XAUUSD.
- Journaling — so every trade, win or loss, becomes something you learn from.
Most importantly, recognise that leveraged gold trading carries a high risk of loss. No guide, strategy or community can remove that risk — but understanding exactly what you’re trading is the right place to start.
Frequently asked questions
Is XAUUSD the same as gold?
XAUUSD is the price of one troy ounce of gold in US dollars. When you trade it with most retail brokers, you are usually trading a derivative (such as a CFD) based on that price — not buying physical gold.
Why is gold called XAU?
Under the ISO 4217 currency code standard, precious metals have codes starting with X. ‘AU’ comes from aurum, the Latin word for gold.
Can beginners trade XAUUSD?
Anyone with a broker account can, but gold’s volatility and leverage make it unforgiving for beginners. Learning risk management and practising on a demo account first is widely recommended.