Gold is one of the most popular markets for retail traders. It moves a lot, trades almost 24 hours a day and responds clearly to news. Here is what you need to know before trading XAUUSD.
What is XAUUSD?
XAUUSD is the price of one troy ounce of gold in US dollars. When you trade it with a forex broker you are trading a CFD (contract for difference): you profit or lose from price changes without owning physical gold.
What moves the gold price?
- US interest rates and the dollar — gold usually falls when real US yields and the dollar rise, and rises when they fall.
- Inflation data — US CPI releases often cause sharp moves.
- Central bank buying — large gold purchases by central banks support prices.
- Risk sentiment — gold is a traditional safe haven during geopolitical stress.
Lot sizes and value per move
At most brokers 1 standard lot of XAUUSD = 100 ounces. That means:
- 1.00 lot: $100 profit or loss per $1 move
- 0.10 lot: $10 per $1 move
- 0.01 lot: $1 per $1 move
Gold can move $20 or more in a single session, so start with 0.01 lots on a small account.
Best times to trade gold
Liquidity and movement are highest during the London session and the London–New York overlap (roughly 13:00–17:00 GMT). The Asian session is usually quieter. Spreads widen around major US data such as Non-Farm Payrolls and CPI.
A simple trend-following approach
- On the 1-hour chart, add a 50 EMA and a 200 EMA.
- Only look for buys when price is above both EMAs, and sells when it is below both.
- Wait for price to pull back to the 50 EMA or a recent support/resistance level.
- Enter on a clear rejection candle, with the stop loss beyond the recent swing.
- Target at least twice your risk, and risk no more than 1% of your balance.
No strategy wins every time. Test any approach on a demo account and keep a trading journal.
Which broker for gold?
Look for low gold spreads, fast execution and a minimum deposit that fits your budget. Exness is popular for gold thanks to its low minimum deposit and tight XAUUSD spreads. Compare all options on our forex broker comparison and get free gold setups on our free forex signals page.
