GuideBeginner9 min readJune 24, 2026

XAUUSD Explained: Everything You Need to Know

Complete breakdown of XAUUSD trading. Learn how gold is priced against the USD, pip values, contract sizes, and session behavior.

LinGold Trader

Lin's Take

I wrote this guide based on how I actually trade gold. No theory — just what works after 10 years.

Key Takeaways

◆XAU comes from 'aurum', the Latin word for gold. If XAUUSD is trading at 1,950.50, it costs $1,950.50 to buy one ounc...
◆For XAUUSD, 1 pip = $0.01 in price movement:
◆STP/NDD: 0.3-0.6 pips

What XAUUSD Means

XAU is the ISO code for gold. USD is the US dollar. XAUUSD represents one troy ounce of gold priced in US dollars.

Contract Size and Pip Value

1 standard lot of XAUUSD = 100 troy ounces. Each pip is worth approximately $10 at 1 standard lot.

Trading Sessions Impact

Asian session: range-bound. London: breakout moves. NY session: highest volatility.

What Moves Gold Prices

Key drivers: USD strength, interest rates, geopolitical risk, inflation, central bank reserves.

Spread Costs on XAUUSD

ECN brokers: 0.1-0.3 pips. Standard brokers: 0.3-0.8 pips. Market makers: 0.5-1.5 pips.

Leverage and Margin for Gold

1:100 leverage: ~$180 margin per 0.1 lot. 1:500: ~$36 margin per 0.1 lot.

XAUUSD Explained

XAUUSD is the symbol that represents the price of gold in US dollars.

Understanding the Symbol

XAU comes from 'aurum', the Latin word for gold. If XAUUSD is trading at 1,950.50, it costs $1,950.50 to buy one ounce of gold.

Pip Values in Detail

For XAUUSD, 1 pip = $0.01 in price movement:

0.01 lots (micro): $0.10 per pip
0.10 lots (mini): $1.00 per pip
1.00 lots (standard): $10.00 per pip

Spread Comparison

ECN: 0.1-0.3 pips

STP/NDD: 0.3-0.6 pips

Market Maker: 0.5-1.5 pips

I don't predict. I prepare. — Every trade I share here is placed with real money, in real time, during the US session. No indicators, no noise — just price action and experience.

— Happy trading, Lin

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What You Will Learn in This Guide

This guide covers "how to start gold trading", "gold trading for beginners", "gold trading guide". Whether you are new to gold trading or refining your approach, understanding beginner principles helps you make better trading decisions.

Why XAUUSD Explained: Everything You Need to Know Matters for Gold Trading

Every gold trader needs to understand "proper lot size for gold", "how to calculate gold pip value", "risk reward ratio gold". Without proper XAUUSD Explained: Everything You Need to Know, you are trading blind. Use this tool alongside how to stay disciplined in trading, how to start gold trading and trader psychology tips to build a complete risk management framework.

Related Risk Management Concepts

Understanding "proper lot size for gold", "how to calculate gold pip value", "risk reward ratio gold" is just the beginning. Serious gold traders also study how to stay disciplined in trading, how to start gold trading and trader psychology tips to protect their capital. Master these concepts and you will trade with confidence across all sessions.

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