XAU/USD

XAUUSD signals: reading the instrument, not just the levels

XAUUSD is the ticker for spot gold against the US dollar. Before a signal on it is useful you need to know what one lot is, what a pip is worth, and why the spread you see at 08:00 is not the spread you get at 13:30.

  • Contract and pip conventions
  • Spread and session behaviour
  • Level placement that survives noise
  • Worked sizing example

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Short answer

XAUUSD is spot gold quoted in US dollars per troy ounce. XAU is the ISO code for gold; the X prefix marks a non-national currency. One standard lot is 100 ounces, quoted to two decimals, with a pip conventionally taken as 0.1, making one pip roughly $10 per standard lot. A signal on XAUUSD is read exactly like a forex signal; only the scale of the numbers changes.

Key takeaways

  • XAU is the ISO 4217 code for one troy ounce of gold. XAG is silver, XPT platinum, XPD palladium.
  • A standard XAUUSD lot is 100 ounces. At $2,350 that is $235,000 of notional exposure.
  • Brokers differ on gold contract size and pip definition. Check the contract specification before trusting any per-pip figure.
  • Spread on gold is variable, not fixed, and widens by multiples around US data and the daily rollover.
  • Gold gaps over the weekend more often than major currency pairs do.

What the ticker means

Currency codes follow ISO 4217. National currencies get a two-letter country code plus a letter for the currency: US Dollar is USD, Euro is EUR. Commodities traded as currencies get an X prefix. XAU for gold, XAG silver, XPT platinum, XPD palladium.

So XAUUSD reads as "gold against the US dollar", quoted as the number of dollars for one troy ounce. A quote of 2350.45 means one ounce costs $2,350.45. A troy ounce is 31.1035 grams, slightly heavier than the ordinary ounce.

Buying XAUUSD is a long gold, short dollar position. Both legs matter: gold can be flat in euro terms while XAUUSD rises purely because the dollar fell. That is a common source of confusion when a "gold rally" does not match the fundamental story you expected.

Contract specification

PropertyTypical valueNote
Standard lot100 troy ouncesSome brokers use 10 ounces; verify
Minimum lot0.01 (1 ounce)Broker-dependent
Quote precision2 decimalsSome feeds show 3
Pip (convention)0.1Some platforms call 0.01 a pip
Pip value per lot≈ $10Follows directly from 100 oz × 0.1
Typical spread15–35 pointsVariable; multiplies on news
Trading hours~23h/day, Mon–FriDaily break around rollover

The pip ambiguity is the one that bites. If your platform treats 0.01 as a pip, a "150-pip stop" in a signal means something four-and-a-half times different from what the author intended. When in doubt, work in price distance. "stop at 2331.00" is unambiguous in a way that "150 pips" is not.

Spread and session behaviour

Gold spread is variable and the variation is large. A broker advertising "from 15 points" is quoting the best case in the deepest part of the London–New York overlap. Around a US CPI release the same instrument can widen to 80 points or more for a few minutes, and around the daily rollover it widens on almost every broker.

Two practical consequences. First, a stop placed just beyond an obvious level can be taken out by a spread spike rather than by price, leave room for it. Second, entering in the first seconds after a major release means paying several times the normal cost, which is enough to turn a marginal setup into a negative-expectancy one.

Session-wise, the Asian hours are typically quiet and mean-reverting, London builds the range, and the New York overlap produces most of the day's movement. See trading sessions for the full picture.

Reading an XAUUSD signal

Take the example signal: Buy XAU/USD, entry 2338.40, stop 2331.00, TP1 2345.90, TP2 2352.10.

  1. Risk distance: 2338.40 − 2331.00 = 7.40 in price, which is 74 pips at the 0.1 convention.
  2. Reward to TP1: 2345.90 − 2338.40 = 7.50, so roughly 1:1 at the first target.
  3. Reward to TP2: 13.70, about 1.85:1.
  4. Position size: on a $10,000 account risking 1%, that is $100 ÷ (74 × $10) = 0.135 lots, rounded down to 0.13.
  5. What invalidates it: price trading at 2331.00. Not "it feels wrong", the stop is the definition.

Scaling out at TP1 and moving the stop to breakeven converts the remainder into a free option on TP2. That is a personal choice about how you weight consistency against expectancy, and the signal-reading guide covers the trade-off.

Written and reviewed by the MarketPro research desk

MarketPro is a trading-signal and trading-education app operated by Harajuku Holdings LTD (Cyprus). Our signal desk publishes and tracks every trade idea in-app, and every page here is checked against the app's live behaviour before publishing. Last reviewed . How we produce signals and content · About MarketPro

FAQ

Frequently asked questions

What does XAUUSD mean?
XAU is the ISO 4217 code for one troy ounce of gold; USD is the US dollar. XAUUSD is therefore the dollar price of one troy ounce of gold. Buying it is a bet that gold rises against the dollar.
How many pips does gold move in a day?
Commonly 150 to 300 points at the 0.1 pip convention, and considerably more around major US data. That is several times a major currency pair, which is why stops and position sizes on gold cannot be copied from forex habits.
How much is 1 lot of XAUUSD?
One standard lot is 100 troy ounces. At $2,350 an ounce that is $235,000 of notional exposure, requiring about $2,350 of margin at 1:100 leverage. Some brokers define a gold lot as 10 ounces, so check the contract specification.
Why is the spread on gold so wide?
Gold is quoted from a smaller set of liquidity providers than a major currency pair and it reacts sharply to US macro data. Both effects push spreads out precisely when volatility is highest. The spread you see in a quiet Asian session is not the one you get thirty seconds after a CPI release.
Is XAUUSD the same as gold futures?
No. XAUUSD is spot gold, traded over the counter with no expiry and an overnight financing charge. Gold futures (GC on COMEX) are exchange-traded contracts with fixed expiry dates and a different margin regime. Prices track each other closely but they are different instruments with different costs.
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