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How gold trading works (XAU/USD for beginners)

Updated October 16, 2026 · By the Pips & Gold team

Gold is quoted as XAU/USD: the price of one troy ounce of gold in US dollars.

Ways to trade gold

  • Spot gold / CFDs through a forex broker (availability depends on your country — many US forex accounts don’t offer spot gold, while it is common in Canada).
  • Futures on the COMEX exchange, including smaller “micro” contracts, through a futures broker.
  • ETFs that hold gold, bought like a stock in a regular investing account.

What moves the gold price?

  • Interest rates: Gold pays no interest, so higher rates and bond yields often weigh on it.
  • The US dollar: A stronger dollar often pushes gold lower, and a weaker dollar can help it.
  • Inflation data: Reports like the US CPI can cause big, fast moves.
  • Fear and uncertainty: Wars and financial stress can increase demand for gold as a “safe haven”.
  • Central bank buying.

Gold moves a lot

Gold can move $50–$100 in a single day. That’s 500–1,000 pips by our convention. Start with very small sizes (0.01 lots = 1 oz) and always use a stop loss.

Each week we explain what moved gold in our Gold Outlook.