Everyone in trading says XAUUSD, and hardly anyone stops to explain it. This short guide breaks the code into its two parts, shows you how to read the number on your screen, and explains why gold is one of the most popular markets for new and experienced traders alike.
XAU plus USD: two codes, one market
XAU is the official code for gold, in the same way GBP stands for the British pound. USD is the code for the US dollar. Put the two together and XAUUSD simply means gold priced in US dollars. When you see it on a trading platform like MT5, you are looking at the price of gold expressed in dollars, nothing more mysterious than that.
How to read the price
The number you see is the price of one ounce of gold. If XAUUSD shows 2,400.00, one ounce of gold costs 2,400 US dollars at that moment. When the number rises, gold is getting more expensive against the dollar. When it falls, gold is getting cheaper. Every trade idea we send uses this same price, with an entry, a stop-loss and a take-profit.
Why traders love gold
Gold moves every single day, reacts quickly to news and is one of the most traded markets in the world. That daily movement in both directions is what creates opportunity for traders, and it is also where the risk lives. Learning to respect both sides is the first real lesson. If you want someone to walk you through your first gold trade, our free community is the place to start.
Key takeaways
- XAU is gold, USD is the US dollar: XAUUSD is gold in dollars
- The price shown is the cost of one ounce of gold
- Gold moves daily, which brings opportunity and risk together
Common questions
Is XAUUSD the same as gold?
Yes. XAUUSD is the trading symbol for gold priced in US dollars. When people talk about trading gold on MT5, they usually mean XAUUSD.
What does the XAUUSD price number represent?
It is the price of one ounce of gold in US dollars. A reading of 2,400.00 means one ounce costs 2,400 dollars at that moment.
Trade ideas with the levels already worked out
Join the free community and receive XAU/USD trade ideas with entry, stop-loss and take-profit, live training on Tuesdays and Thursdays, and support whenever you are stuck.
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.
More from Trading Basics
Your first week with Gold Trade Signals, day by day
Curious what your first week looks like? From the onboarding call to your first trade idea and live training session, here is the week in plain English.
Trading questions beginners are too scared to ask
Is it too late to start? Do you need maths? Can you lose money? Honest answers to the trading questions beginners feel too embarrassed to ask out loud.
How to place a gold trade on MT5 in four taps
Placing a gold trade on MT5 takes about four taps: find XAUUSD, open the order screen, set your numbers and execute. Your first time, we do it with you.