Gold (XAU/USD)
XAU/USD is the price of gold in US dollars per troy ounce (about 31.1 g). Brokers offer gold as a currency-style pair, usually as a CFD or spot contract without delivery of metal.
How it works
XAU is gold's international code, just as USD is the dollar's. A quote of 2,400.00 means an ounce costs $2,400. Buying XAU/USD profits from a rising gold price, selling profits from a fall. You do not receive a physical bar.
The price is driven by real interest rates (rates minus inflation), the dollar, central bank buying and market fear. When rates rise and the dollar strengthens, gold often falls: it pays no interest, so holding it becomes less attractive. In crises it is bought as a safe haven.
Contract size depends on the broker, but 1 lot is often 100 ounces. A $1 price move then changes your result by $100 per lot. Gold moves noticeably more than major currency pairs, especially on inflation data and Fed decisions, and EU retail clients are limited to 1:20 leverage on it.
You buy 0.1 lot of XAU/USD (10 ounces) at $2,400 with a stop at $2,385. Risk: 15 × 10 = $150. If price rises to $2,430, profit is 30 × 10 = $300. With 1 lot, the same stop would cost $1,500.
A common mistake is trading gold with the same size as EUR/USD without checking the contract size. A normal daily move of $20–40 on a 100-ounce lot is $2,000–4,000, which is a disaster for a small account. Before trading, read the broker's contract specification and size the position from your stop in dollars.
Questions and answers
What is XAU/USD in simple terms?
It is the price of one ounce of gold in US dollars, traded like a currency pair: buy to bet on a rise, sell to bet on a fall.
How much is one pip worth on gold?
It depends on the broker and contract size. If 1 lot is 100 ounces, a $1 move is $100 per lot and a $0.01 move is $1.
Why does gold fall when the dollar rises?
Gold is priced in dollars, so a strong dollar makes it more expensive for buyers using other currencies. Rising rates also make gold, which pays no interest, less attractive.
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Updated: 2026-10-19