What Is XAU/USD and How Is Gold Quoted?
Direct answer
XAU/USD explained
XAU/USD is the spot price of one troy ounce (about 31.1 grams) of gold expressed in US dollars. "XAU" is the ISO 4217 code for gold, so platforms list it alongside currency pairs. A quote of 4,105.50 means one ounce costs $4,105.50. On many CFD and forex platforms one standard lot of XAU/USD is 100 ounces, so a $1 move is $100 per lot, but contract sizes vary by broker, so check the specification before trading.
- XAU = ISO 4217 code for one troy ounce of gold
- XAU/USD 4,105.50 = $4,105.50 per ounce
- Common CFD lot: 100 oz, so $1 move = $100 per lot (broker-specific)
- 1 troy ounce ≈ 31.1035 grams
Gold is one of the most traded symbols on retail platforms, and its ticker confuses newcomers: it looks like a currency pair because, in a sense, it is one.
What people on X are asking
In July 2025 a reply asked a trader simply, what is $XAU? Many gold traders' posts start with the same daily prompt, such as what does XAUUSD have for us today? and one trader complained in August about what XAUUSD "really wants" after being stopped out. Before asking what gold will do, it helps to know exactly what the number on the screen measures.
The fact-checked answer
The code. ISO 4217, the international standard for currency codes, includes codes for precious metals: XAU for gold, XAG for silver, XPT for platinum and XPD for palladium. Each represents one troy ounce. So XAU/USD reads like EUR/USD: the price of one unit of the first item (an ounce of gold) in units of the second (dollars).
The unit. A troy ounce is about 31.1035 grams, heavier than the everyday (avoirdupois) ounce of about 28.35 grams. Gold prices worldwide, including the World Bank's monthly series, are quoted per troy ounce. In that series gold averaged $4,105 in October 2026, after a record $5,020 in February 2026.
Lots and "pips" on platforms. Brokers define their own contract sizes for gold CFDs and spot gold. A common convention is 1 standard lot = 100 ounces, with 0.01 lots = 1 ounce. Some platforms call a $0.01 move a "point" and a $0.10 move a "pip"; others use different terms, which is why gold traders often talk in dollars instead.
Dollar value of gold moves by position size
Arithmetic by UXS assuming 100 oz per lot, a common but broker-specific convention. Check your broker's contract specification. Tap a column header to sort.
| 0.01 lot | 1 | $1 | $10 | $40 |
| 0.10 lot | 10 | $10 | $100 | $400 |
| 1.00 lot | 100 | $100 | $1,000 | $4,000 |
| Micro Gold futures (MGC) | 10 | $10 | $100 | $400 |
| Gold futures (GC) | 100 | $100 | $1,000 | $4,000 |
Spot vs futures vs CFD. XAU/USD on retail platforms usually tracks spot gold; brokers price it from the wholesale market and add a spread. Futures such as COMEX GC trade on an exchange and include carry costs; see gold futures vs micro gold futures. In the EU, ESMA's rules cap retail leverage on gold CFDs at 20:1, lower than on major currency pairs (30:1).
What moves it. Real interest rates, the dollar, central bank purchases and safe-haven demand; see why the gold price is going up and the gold/silver ratio. For a beginner's comparison with EUR/USD, see which forex pair is best for beginners.
Quick poll
How do you trade or hold gold?
What each answer means
- XAU/USD CFDs or spot on a trading platform: Check the lot size and overnight financing; gold's dollar moves are large.
- Gold futures (GC, MGC or 1OZ): Exchange-traded with standard sizes; mind margin and roll dates.
- Gold ETFs: Simple long-term exposure without leverage.
- Physical coins or bars: No counterparty, but premiums and storage costs.
- I don't trade gold: Fine; if you start, demo first because gold moves faster in dollar terms than major currency pairs.
Your answer is stored only in this browser (localStorage). UXS does not collect, count or publish votes, so no totals are shown.
Overnight financing. A leveraged XAU/USD position held past the platform's daily cut-off usually incurs a swap or financing charge, based on interest rates and the broker's mark-up. Because gold pays no interest, long positions are often charged every night; short positions may be charged or credited depending on rates. Over weeks these charges add up, so check the swap rate in the symbol's specification before holding a gold trade for longer than a few days.
Expected gold swings are priced in the GVZ; see why gold volatility jumped so high in 2026.
Futures quotes differ from spot XAU/USD; see why the gold futures price is higher than spot.
Decision helper
| Your account risk per trade | Typical stop | Rough position at 100 oz/lot |
|---|---|---|
| $50 | $10 | 0.05 lot |
| $100 | $20 | 0.05 lot |
| $250 | $15 | about 0.16 lot |
| $1,000 | $25 | 0.40 lot |
Formula: lots = dollar risk ÷ (stop distance in dollars × 100).
Common mistakes
- Assuming a gold "pip" means the same as a forex pip.
- Using the same lot size as on EUR/USD.
- Ignoring overnight financing charges on leveraged gold positions.
- Comparing platform prices with futures prices without allowing for carry.
FAQ
What does XAU stand for?
It is the ISO 4217 code for gold; "Au" is gold's chemical symbol and the X marks a non-national unit.
Is XAU/USD the same as gold spot price?
On most platforms it tracks spot gold, with the broker's spread added.
How much is one lot of XAU/USD?
Commonly 100 ounces, but it varies by broker.
How many grams is a troy ounce?
About 31.1035 grams.
What is XAG/USD?
The price of one troy ounce of silver in US dollars.
Why is gold traded like a currency?
Gold has long been treated as a monetary asset, so dealing desks quote it like a currency against the dollar.
Sources
- World Bank: Commodity markets (Pink Sheet)
- ISO: ISO 4217 currency codes
- NIST: Units of mass (troy ounce)
- ESMA: Restrictions on CFDs for retail investors
Facts checked November 10, 2026. X posts are cited as evidence of the question, not of the answer.