What Is XAUUSD? Spot Gold Priced in US Dollars, Explained

XAUUSD is the ticker for spot gold priced in US dollars. XAU is the ISO code for one troy ounce of gold, and USD is the quote currency, so when XAUUSD reads 2,400, one ounce of gold costs 2,400 US dollars. It is the most common way active traders take a position on the gold price.

This guide explains what XAUUSD is, whether it counts as forex or a commodity, how it is priced and sized, and how traders access it, including the traders who cannot get it through a domestic broker.

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What XAUUSD actually means

Break the symbol in half. XAU is the standardized code for one troy ounce of gold (the "X" prefix marks a precious metal, like XAG for silver or XPT for platinum). USD is the currency the price is expressed in. Put together, XAUUSD is simply "the dollar price of an ounce of gold."

It works the same way a currency pair does: the first code is what you are buying or selling (gold), and the second is what you are paying in (dollars). If you go long XAUUSD, you profit when gold strengthens against the dollar; if you go short, you profit when it weakens.

Is XAUUSD forex or a commodity?

This is the most common point of confusion. XAUUSD is a commodity. It appears on forex platforms and is quoted against the dollar, which is why many people file it under forex, but its price is driven by commodity and macro forces, not by another country's monetary policy.

What moves XAUUSD:

• Real interest rates. Gold pays no yield, so when real rates fall, holding it costs less and demand rises.
• The US dollar. Because gold is priced in dollars, a stronger dollar usually pressures XAUUSD and a weaker dollar supports it.
• Inflation expectations. Gold is a traditional inflation hedge.
• Safe-haven demand. In risk-off periods, flows into gold push XAUUSD up.

Scheduled macro events (FOMC, CPI, non-farm payrolls) move XAUUSD sharply, so trading it well often means trading around news. See what is FOMC trading and what is NFP trading.

How XAUUSD is priced and sized

XAUUSD is quoted to two decimal places. A move from 2,400.00 to 2,401.00 is a one-dollar move, which equals 100 pips on XAUUSD (each pip is a 0.01 change). This matters because gold is more volatile than most currency pairs: intraday moves of 1% to 2% are routine, so a position that feels small in lots can carry large dollar risk.

Most traders access XAUUSD as a contract for difference (CFD), which tracks the spot price and lets you go long or short with leverage without ever holding physical metal. Leverage magnifies both gains and losses, so position sizing against a fixed daily loss limit matters more on gold than on slower instruments. For how position value is calculated, see notional value explained.

How to trade XAUUSD

There are three practical routes:

1. Spot XAUUSD CFD through a broker, where available. The most flexible and tightest-spread route.
2. Gold futures (CME GC or micro MGC) on a regulated exchange, with fixed contract sizes and expiries.
3. A funded prop account, where you trade XAUUSD pricing on a firm's capital against a profit split.

A note for US traders: spot XAUUSD CFDs are often unavailable through US domestic brokers, which pushes US retail traders toward gold futures. A funded account is a common workaround, because a challenge is an educational, simulated evaluation priced against real-time markets rather than a domestic brokerage account. For the full breakdown of every route, see how to trade gold.

Trading XAUUSD on a funded account

On a Velotrade funded account, XAUUSD is a first-class commodity instrument: up to 6x leverage on the challenge (5x funded), commission of 0.01% per side, and no spread markup. It sits on one DXtrade account next to tokenized gold (XAUT), crypto, forex, indices, and stocks, so you can trade gold and rotate into other markets without switching firms. The rules suit an active gold strategy: static maximum drawdown (the floor is fixed from your starting balance and never trails your equity), no consistency rule, and news trading permitted. To compare firms specifically for gold, see best prop firm for gold.

Velotrade is unregulated and offers educational, simulated evaluations with real-time market pricing. It is not a broker, dealer, or custodian, and no orders are placed on an exchange.