XAUUSD is the price of one troy ounce of gold in US dollars. XAU is the international code for gold and USD is the dollar, so the symbol is quoted like a currency pair. Gold responds mainly to US real interest rates, the dollar, central bank buying and demand for safety, and it moves far more in a day than major currency pairs.
Key takeaways
- One troy ounce is 31.1 grams. A standard lot is commonly 100 ounces, so a $1 move in the price is worth $100 per lot.
- Gold pays no interest. It tends to rise when real yields and the dollar fall, and to struggle when they rise.
- Central banks have bought more than 1,000 tonnes of gold a year since 2022, an important source of demand outside the investment market.
- “Pip” means different things at different brokers for gold. Think in dollars per $1 move instead.
- Daily ranges of 1% to 2% are ordinary, so position size matters more than in currencies.
| What the quote means | US dollars per troy ounce of gold |
|---|---|
| XAU | ISO 4217 code for gold; X marks a non-national currency, AU is the chemical symbol |
| Troy ounce | 31.1035 grams |
| Contract size, 1.00 lot | 100 ounces is the common standard |
| Value of a $1.00 move, 1.00 lot | $100 |
| Value of a $1.00 move, 0.01 lot | $1 |
| Most active window | 12:00–17:00 UTC, the London–New York overlap |
| Main reference prices | LBMA Gold Price (London), COMEX futures (New York) |
| Symbol at Marketsall | XAUUSD |
What is XAUUSD?
Gold has a currency code because it is traded and settled like one. In XAUUSD gold is the base and the dollar is the quote: a price of 4,000.00 (an illustrative figure) means one ounce costs $4,000. The platform shows a bid and an ask, and the gap is the spread. Trading hours are covered separately in when the gold market opens and closes.
XAUUSD contract size and what a move is worth
| Lot size | Ounces | Value of a $1.00 move | Value of a $10.00 move | Value of a 1% move at $4,000 |
|---|---|---|---|---|
| 1.00 | 100 | $100 | $1,000 | $4,000 |
| 0.10 | 10 | $10 | $100 | $400 |
| 0.01 | 1 | $1 | $10 | $40 |
Why “gold pip value” causes confusion
In currencies a pip has a fixed definition. In gold it does not. Some brokers and calculators call a $0.01 move a pip, others $0.10, and some traders use the word for a full dollar. The same trade can therefore be described as 10, 100 or 1,000 pips. The way round this is to ignore pips and work in dollars: price move × ounces held. Check the digits and contract size in the MT5 contract specification.
With gold at $4,000, 0.10 lots is 10 ounces, or $40,000 of exposure. If leverage on gold were 1:100, the margin would be $400, and a $40 move, 1% of the price, would cost $400: the whole margin.
What moves the gold price?
| Driver | How it tends to work | What to watch |
|---|---|---|
| US real yields | Gold pays no income. When inflation-adjusted bond yields fall, the cost of holding gold falls and the price tends to rise. | 10-year TIPS yield, gold and real yields |
| The US dollar | Gold is priced in dollars, so a weaker dollar usually means a higher gold price. | US Dollar Index, how the US dollar affects commodities |
| Federal Reserve expectations | Expected rate cuts pull yields and the dollar lower together, which helps gold. | FOMC meetings, US CPI, Non-Farm Payrolls |
| Central bank buying | Reserve managers have been large, price-insensitive buyers since 2022. | World Gold Council quarterly demand reports |
| Safe-haven demand | Wars, banking stress and political shocks bring buyers in, often abruptly. | risk-on vs risk-off, how geopolitical shocks move gold, oil and the dollar |
| Physical demand | Jewellery and bar demand from India and China sets a floor in quiet markets. | Festival and wedding seasons, import data |
The relationships are not constant. In recent years gold has at times risen alongside higher yields because central bank and safe-haven buying outweighed them.
When is gold most active?
Gold vs silver vs EUR/USD
| Feature | Gold (XAUUSD) | Silver (XAGUSD) | EUR/USD |
|---|---|---|---|
| Typical daily move | 1–2% | Larger than gold | About 0.5% |
| Main drivers | Real yields, dollar, safety | Gold plus industrial demand | ECB–Fed rate gap |
| Income | None; swap cost to hold | None; swap cost to hold | Swap credit or debit |
| Read more | This guide | Silver vs gold | EUR/USD guide |
What it costs to trade XAUUSD as a CFD
At Marketsall gold is traded as a CFD: no metal is delivered and your account is credited or debited with the price difference. See what a CFD is.
| Cost | When it applies | Note for XAUUSD |
|---|---|---|
| Spread | Every trade, at entry | Tightest in the London–New York overlap; wider in the Asian session and in the hour around the daily close |
| Commission | Depends on instrument and account type | Shown in the symbol specification in MetaTrader 5 |
| Swap / overnight financing | Positions held past the daily rollover | Gold earns no interest, so holding a long position overnight normally costs money. |
| Contract rollover | Only if the CFD is based on a futures contract | The price adjusts when the underlying contract changes. |
| Slippage | Fast markets, gaps, news | Common around US data and in the first minutes after the Sunday open |
Key risks
Volatility. A 1–2% day is normal and 3% days occur several times a year.
Event risk. US CPI, payrolls and Fed decisions move gold as much as they move the dollar.
Weekend gaps. Geopolitical news often breaks at weekends. See gap risk.
Financing drag. Swap on a long-held position adds up.
Risk warning. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, the products offered on this website may not be suitable for all investors because of the risk of losing all of your invested capital. You should never invest money that you cannot afford to lose, and never trade with borrowed money.
Frequently asked questions
What is the contract size of XAUUSD?
The common standard is 100 troy ounces per 1.00 lot, so 0.01 lots is one ounce. Contract size is set by each broker, so check the symbol specification in your platform before trading.
How much is a $1 move worth in XAUUSD?
With a contract size of 100 ounces, a $1.00 move in the gold price is worth $100 on 1.00 lot, $10 on 0.10 lots and $1 on 0.01 lots. The calculation is the price move multiplied by the number of ounces held.
What moves the gold price most?
US real interest rates and the US dollar are the most consistent drivers: gold tends to rise when they fall. Federal Reserve expectations, central bank purchases and safe-haven demand during crises are the other main forces.
Why is gold more volatile than currency pairs?
A currency pair compares two economies that often move together, which dampens the rate. Gold is a single asset priced in dollars, with a smaller market and demand that surges in crises, so daily moves of 1% to 2% are normal compared with about 0.5% in EUR/USD.
Related reading
Size gold around US data
Run the numbers in how to calculate margin on MT5 for the XAUUSD lot size you have in mind, and keep the economic calendar open to see which days bring US inflation, payrolls or a Fed decision.
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