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.
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...
- On XAUUSD, brokers use two different definitions for 1 pip. This site uses the $0.10 definition (1 pip = $0.10 price ...
- STP/NDD: 0.3-0.6 pips
- 01
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.
- 02
Contract Size and Pip Value
1 standard lot of XAUUSD = 100 troy ounces. Each pip is worth approximately $10 at 1 standard lot ($0.10 pip definition; some brokers count pips as $0.01).
- 03
Trading Sessions Impact
Asian session: range-bound. London: breakout moves. NY session: highest volatility.
- 04
What Moves Gold Prices
Key drivers: USD strength, interest rates, geopolitical risk, inflation, central bank reserves.
- 05
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.
- 06
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
On XAUUSD, brokers use two different definitions for 1 pip. This site uses the $0.10 definition (1 pip = $0.10 price move), the standard on most gold brokers:
- 0.01 lots (micro): $0.10 per pip
- 0.10 lots (mini): $1.00 per pip
- 1.00 lots (standard): $10.00 per pip
Some platforms and guides define 1 pip as $0.01 instead (a $0.10 move = 10 pips). Under that definition, 1 standard lot is worth $1.00 per pip. The dollar values are identical — only the pip scale changes. Always confirm how your broker counts pips before sizing a position.
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. No indicators, no noise — just price action and experience.
— Happy trading, Lin
Recommended Brokers
Recommended: Visit EBC → — tested across all sessions.
Start Trading Gold →Recommended: Visit Wisuno → — tested across all sessions.
Start Trading Gold →Readers also ask
All FAQs →What is XAUUSD?
XAUUSD is the symbol for gold trading against the US dollar. XAU represents gold (from the periodic table symbol for gold, Au), and USD is the US dollar. It is …
How does leverage work in gold trading?
Leverage in gold trading means you control a larger position with a smaller amount of capital. For example, with 1:100 leverage, a $1,000 deposit lets you contr…
What does XAUUSD mean?
XAUUSD is the price of one troy ounce of gold in US dollars. XAU is the ISO code for gold and USD for the dollar. At brokers it is traded as a contract for diff…
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