Gold is the market we trade every day, yet most people know surprisingly little about how it actually works. In this article we share a few quick facts that explain what the XAUUSD price refers to, where and when gold is traded, and why movements in the US dollar matter to every gold trader.
Gold is priced per troy ounce
When you see the XAUUSD price, it is the price of one troy ounce of gold in US dollars. A troy ounce is about 31.1 grams, which is a little heavier than the ordinary ounce used for food and parcels. The troy measure has been the standard for precious metals for centuries, which is why the industry still uses it today.
Gold is traded worldwide
Gold does not belong to a single exchange or country. From London to New York to Asia, it changes hands almost around the clock on weekdays, as one trading session hands over to the next. That is why the chart keeps moving while you sleep, and why a trade placed in the evening can look very different by morning.
For a trader, this means two things. First, the market you see is the same market everyone else sees, wherever they are. Second, some hours are far busier than others, usually when the London and New York sessions overlap. We help members work out when those active hours fall in their own time zone.
Gold is linked to the dollar
Because gold is priced in US dollars, big moves in the dollar often show up in gold too. A stronger dollar can weigh on the gold price, while a weaker dollar can support it. This is why gold traders watch US economic news so closely, and why it is one of the first things we check when building a trade idea. Learn the gold market with us in the free community.
Key takeaways
- XAUUSD is the price of one troy ounce (about 31.1 grams) in US dollars.
- Gold trades almost around the clock on weekdays, across London, New York and Asia.
- Big moves in the US dollar often show up in the gold price.
Common questions
What does the XAUUSD price actually measure?
It is the price of one troy ounce of gold in US dollars. A troy ounce is about 31.1 grams, slightly heavier than a standard ounce.
Why does the US dollar affect the gold price?
Gold is priced in dollars, so when the dollar moves sharply, the gold price often moves as well. That is why gold traders follow US economic news.
Trade ideas with the levels already worked out
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Join free on TelegramOpen the calculatorsRisk warning: This article is educational content, not personal investment advice. Gold is a leveraged, volatile instrument and you can lose some or all of your capital. Gold Trade Signals is not FCA regulated. Read the full risk warning.
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