Gold is quoted against the US dollar as XAUUSD: one lot typically represents 100 troy ounces. Because gold is priced in dollars, the pair inversely tracks real yields and the dollar index — when real rates fall or the dollar weakens, gold tends to shine.
The main drivers are real interest rates, central-bank demand, geopolitical risk and flows into safe-haven assets. Each driver dominates at different times, which is why gold requires a macro lens even for technical traders.
Practical notes: gold’s pip size on most platforms is 0.01, worth $1 per lot, so a $10 move equals 1,000 points. Volatility is materially higher than major FX pairs, so position sizes should be smaller for the same risk budget.
Before trading XAUUSD live, size your positions with the calculator tools and rehearse the plan on a demo account.
This content is provided for educational purposes only and does not constitute investment advice. Trading leveraged products involves a high level of risk.