How to Trade Gold (XAUUSD) for Beginners

Updated 11 Oct 2026 · 6 min read

Gold (XAUUSD) is the price of one troy ounce of gold in US dollars. It is heavily traded and fast-moving, so learn how it works before risking money.

What is XAUUSD?

XAU is the market code for gold. If XAUUSD shows 2,400, one ounce costs $2,400. Retail traders usually trade price movement through CFDs without owning gold.

Contract size and pip value

At most brokers, 1 standard lot is 100 ounces, so a $1 move is about $100 profit or loss per lot.

Lot	Ounces	P/L per $1 move
1.00	100	$100
0.10	10	$10
0.01	1	$1

Contract specs differ by broker. Check yours.

When to trade

Gold trades nearly 24 hours on weekdays. Activity is usually highest in the London session, the London/New York overlap and around major US data releases. See the best time to trade gold for session hours.

Costs

You pay the spread and, on raw accounts, a commission per lot. Compare the all-in cost and check whether spreads widen during news.

Risk management

Risk a small fixed percentage per trade. Always use a stop loss. Be careful with leverage. Practise on a demo account first.

Choosing a broker

Look for strong regulation, transparent costs and reliable withdrawals. Test with a small deposit and make an early withdrawal.