What Is XAUUSD? Gold Trading Basics: Reading the Quote, Lot Size and What a $1 Move Is Worth
XAUUSD is spot gold priced in US dollars. This guide explains what the quote means, how many ounces are in a lot, how much a $1 move changes your account, and the three mistakes beginners make most.
XAUUSD on your trading platform is spot gold priced in US dollars. XAU is the international code for gold and USD is the US dollar. A quote of 4030.34 means one troy ounce (about 31.1 grams) of gold is worth 4,030.34 dollars.
How do you read the quote?
- Gold is usually quoted to two decimal places, for example 4030.34.
- There is a buy price and a sell price. The gap between them is the spread, a cost you pay the moment you open a trade.
- When people say gold rose 10 dollars, the quote moved from 4030 to 4040.
How big is a lot, and what is a $1 move worth?
Most platforms use these gold contract sizes (check your own platform's contract specs before trading):
- 1 standard lot = 100 ounces: a $1 move gains or loses $100
- 0.1 lot = 10 ounces: a $1 move is worth $10
- 0.01 lot = 1 ounce: a $1 move is worth $1
Example: you buy 0.05 lots and gold rises from 4030 to 4045. That is a $15 move, so the profit is 15 × 5 = $75. A $15 drop would be a $75 loss.
Why does gold move so much?
Moves of 30 to 50 dollars in a day are common, and bigger on major data days. The main drivers are usually:
- The US dollar: a stronger dollar usually weighs on gold, so it helps to watch the US Dollar Index too
- Rate expectations: when markets expect rate cuts, gold usually benefits
- Safe-haven demand: geopolitical conflict or market panic often pushes money into gold
- Major US data: gold often jumps in the minutes around nonfarm payrolls and CPI
When does gold trade?
Almost 24 hours a day, with a daily break of about one hour. In winter time (November to March) the break is roughly 06:00 to 07:00 UTC+8 and US data comes out at 21:30 UTC+8. See the full US winter time trading hours table.
Three common beginner mistakes
- Lots too big: with a $1,000 account, 0.5 lots loses $1,000 on a $20 move against you. Start with 0.01 lots to get a feel for the swings.
- No stop loss: one data release can move gold dozens of dollars. Without a stop you can lose a big chunk in one go.
- Chasing around data releases: spreads widen and prices jump in those minutes, so your fill is often much worse than the price you saw.
Next step
To see today's support and resistance for gold, check the daily gold analysis page. To get daily alerts on gold and forex setups, download the Borearis app.
Borearis Research Team · For information only, not investment advice. Trading involves risk.
