Trading Gold (XAU/USD): Contract Specification, Pip Value and Behaviour
Gold lot size, what a move is worth in dollars, typical spreads and swaps, trading hours, and how XAU/USD differs from currency pairs.
XAU/USD is the price of one troy ounce of gold in dollars. At brokers it trades as a CFD, nearly around the clock with a short technical break.
Specification
| Parameter | Typical value |
|---|---|
| Standard lot | 100 ounces |
| Minimum size | 0.01 lots = 1 ounce |
| Tick size | 0.01 |
| Tick value per lot | $1 |
| $1 price move | $100 per lot |
| Leverage (EU retail) | 1:20 |
The mistake traders make coming from FX
Someone used to 0.1 lots on EUR/USD puts 0.1 lots on gold and takes on an entirely different risk. In money terms at equal size, gold's daily ATR is usually three to five times EUR/USD's.
The correct approach is the same as everywhere: size from your stop in money. If your gold stop is an $8 move (800 points) and your risk is $20, the size is 0.02 lots.
Swaps and hours
Gold swaps are negative in both directions at most brokers, and the triple charge often falls on Friday rather than Wednesday — check the specification. Trading runs almost continuously, but real movement concentrates in the London and US sessions.
What drives the price
US real interest rates, the dollar, geopolitics and central bank demand. The practical markers for a trader are US inflation releases and Fed meetings, where the sharpest moves occur.
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Frequently asked questions
What is one gold pip worth?
A standard XAU/USD lot is 100 ounces. A $1 price move is $100 of profit or loss. A 0.01 move — one pip in five-digit pricing — is $1.
What is a normal gold spread?
15–30 points ($0.15–0.30) on a standard account in active hours. It widens several times over in the Asian session and around data releases.
Why does gold move more than EUR/USD?
XAU/USD's daily range in percentage terms is typically two to three times that of the major currency pairs, so a size that feels normal in FX carries far more risk in gold.
- Min. deposit
- $100
- Spread
- from 1.1 pips (Standard STP)
- Commission
- $3 per lot per side (Raw ECN)
CFDs are complex instruments with a high risk of losing money
- Min. deposit
- $50
- Spread
- from 1.0 pip (Standard STP)
- Commission
- $3 per lot per side (Raw ECN)
CFDs are complex instruments with a high risk of losing money