How to read XAU/USD
XAU is the market code for gold. USD is the quote currency. If XAU/USD is shown at 2400, the platform is quoting gold around 2400 US dollars per troy ounce. The exact trade size, tick value and margin requirement depend on the broker contract.
Do not assume every broker uses the same lot size or minimum trade size. Before trading live, open the instrument details panel and check how much one point of movement means for your account.
What moves gold against the dollar
Gold often reacts to the dollar and to real yields. When the dollar strengthens or real yields rise, gold can come under pressure. When policy uncertainty, inflation concern or risk stress rises, gold can attract demand. These are tendencies, not rules.
Major US data releases, central-bank meetings, inflation prints and geopolitical headlines can all move XAU/USD. The danger is not only direction; spreads and slippage can also change during fast markets.
- US dollar strength or weakness
- Real yields and rate expectations
- Inflation and central-bank policy
- Risk stress and liquidity demand
- Positioning around major data releases
A practical trading workflow
Start with a market reason, then check risk. Decide whether the trade is intraday, event-driven or a swing position. Estimate the distance to invalidation before choosing position size. If the stop distance is too wide for your account, skip the trade rather than shrinking the stop to fit a desired lot size.
For holding trades overnight, read the financing charge. A gold trade that looks acceptable on the chart can become unattractive if the swap cost is high or if the broker applies a larger weekend charge.