Gold trading

What Is XAUUSD? Gold's Trading Symbol Explained

Short answer

XAUUSD is the symbol for the price of gold in US dollars: XAU is the international code for one troy ounce of gold and USD is the US dollar. A quote of 4,000.00 (an example) means one ounce costs USD 4,000. On most forex platforms one standard lot of XAUUSD is 100 ounces.

Live chart: XAUUSD

On this page
  1. XAUUSD meaning: what XAU and USD stand for
  2. How to read an XAUUSD quote
  3. Buying and selling XAUUSD
  4. What one lot of XAUUSD is
  5. Symbol names you’ll see
  6. XAUUSD, physical gold and gold futures
  7. Where the price comes from
  8. XAUUSD in naira, shillings or rand

XAUUSD meaning: what XAU and USD stand for

Trading symbols for currencies use three-letter codes from the ISO 4217 standard: USD for the US dollar, ZAR for the rand, NGN for the naira, KES for the Kenyan shilling. Precious metals have codes in the same list, starting with X because they don’t belong to any country:

Code Metal Unit
XAU Gold One troy ounce
XAG Silver One troy ounce
XPT Platinum One troy ounce
XPD Palladium One troy ounce

So XAUUSD reads like a currency pair: one unit of the first (an ounce of gold) priced in the second (US dollars). A troy ounce is 31.1034768 grams, a little heavier than the ordinary ounce used for food.

How to read an XAUUSD quote

Your platform shows two prices. With example numbers:

  • Bid 4,000.25: the price you sell at.
  • Ask 4,000.45: the price you buy at.
  • Spread 0.20: the difference, which is your cost on entry. On 1 ounce it is USD 0.20; on 1.00 lot (100 ounces) it is USD 20.

Most platforms show gold to two decimal places, some to three. The number of decimals matters when a platform asks for distances in “points”, so check it in the symbol specification. Our gold pip value guide explains why “pips” on gold cause so much confusion.

Buying and selling XAUUSD

  • Buy if you expect the gold price in dollars to rise.
  • Sell if you expect it to fall. With a CFD you can sell without owning any gold.

Because gold is priced in dollars, XAUUSD also reflects the strength of the dollar itself. A stronger dollar often weighs on the gold price, but the relationship isn’t fixed and can break down for long periods.

What one lot of XAUUSD is

On most forex platforms:

Volume Ounces At an example price of 4,000.00 Value of a USD 1 move
1.00 lot 100 USD 400,000 position USD 100
0.10 lot 10 USD 40,000 position USD 10
0.01 lot 1 USD 4,000 position USD 1

The position value is what leverage is applied to. At 1:100, 0.01 lots at 4,000.00 needs USD 40 of margin; the margin calculator works it out for any size. To choose a size from your stop loss, use the gold lot size calculator.

Symbol names you’ll see

The same instrument can carry different names depending on the broker and account type:

  • XAUUSD: the standard form.
  • XAUUSD with a suffix: some brokers add a letter or characters to show the account type. On Exness Standard accounts it is XAUUSDm.
  • GOLD: some platforms use a plain name instead.

If you can’t find gold in your platform’s Market Watch, search for “XAU” and add whichever version appears. Then open its Specification to confirm the contract size, decimals and trading hours before you place an order.

XAUUSD, physical gold and gold futures

XAUUSD CFD at a forex broker Physical gold Gold futures (exchange)
Do you own gold? No Yes Only if held to delivery
Typical size From 0.01 lots (1 oz) Any weight you buy 100 troy ounces for the main COMEX contract
Leverage Yes No Yes, through margin
Overnight cost Swap, unless swap-free Storage and insurance Built into the futures price
Where African retail traders usually see it Broker apps and MT5 Jewellers and dealers Rarely; needs a futures broker

The COMEX gold futures contract is specified by CME Group.

Where the price comes from

Gold trades around the clock between banks, dealers and exchanges in London, New York, Shanghai and elsewhere. Twice each London working day, at 10:30 and 15:00 London time, an auction sets the LBMA Gold Price, a benchmark used in contracts worldwide (LBMA). Your broker’s XAUUSD quote comes from its own price providers and follows the market continuously, so it won’t match the benchmark exactly.

XAUUSD in naira, shillings or rand

XAUUSD is always in dollars. To estimate the local-currency price of an ounce, multiply the XAUUSD price by the dollar exchange rate you’d actually get. On a dollar trading account, your gains and losses are in dollars too; what they’re worth in naira, shillings or rand depends on the rate when you withdraw.

To see how XAUUSD behaves before using real money, add it to a demo account and watch it through one London–New York session. Then read how to trade gold.

Common questions

What does XAU stand for?

XAU is the ISO 4217 code for one troy ounce of gold. The X marks a code that isn't a national currency, and AU comes from aurum, the Latin word for gold, which is also gold's chemical symbol.

Is XAUUSD forex?

Not strictly. Gold is a metal, not a currency, but brokers list it with the currency pairs and it trades the same way: in lots, with a buy and sell price, a spread and leverage.

Why is gold called XAUUSDm on Exness?

Exness adds an 'm' suffix to symbols on its Standard accounts, so gold shows as XAUUSDm there. It is the same gold price; check the contract size in the symbol specification before you trade.

How much is 0.01 lot of XAUUSD?

Usually 1 troy ounce of gold. At an example price of 4,000.00, that is a USD 4,000 position, and each USD 1 move in the price changes its value by USD 1.