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How gold trading works (XAU/USD for beginners)
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.