What moves gold
- Real interest rates: gold pays nothing, so higher real yields make it less attractive and lower ones more.
- The dollar: gold is priced in dollars, so a stronger dollar usually pushes it down.
- Risk appetite: gold rises in crises and geopolitical scares.
- Central bank buying: several central banks have been steady buyers, supporting the price.
- Inflation expectations: gold is held as a hedge against them.
Trading conventions
| Item | Typical | Check |
|---|---|---|
| Quote | Dollars per troy ounce, XAU/USD | |
| Contract size | 100 ounces per lot | Varies by broker |
| Pip or point | 0.01 or 0.10 dollars | Varies; read the symbol specification |
| Margin | Higher than forex: 1:20 under ESMA and FCA rules | |
| Spread | 20 to 40 cents per ounce at good brokers | Widens at the New York close |
| Daily range | 20 to 40 dollars per ounce, more on news | Size stops in ATR |
Sizing gold
A 10-dollar move on one lot of 100 ounces is 1,000 dollars. Gold moves 10 dollars in minutes on a busy day. Traders who carry forex lot sizes into gold discover this quickly. Use the position size calculator with the broker's contract size and point value, and start with a fraction of a lot.
Hours
Gold trades almost around the clock on weekdays with a short daily break at the New York close, when spreads widen sharply. The most liquid hours are the London and New York sessions.
Try it: Position size calculator
Trading forex, CFDs and other leveraged products carries a high risk of losing money. This guide is general education, not advice.