Where the symbol comes from
The symbol follows the ISO convention for metals: it begins with X to mark an asset that is not a national currency, then AU, the chemical symbol for gold (Aurum). Silver appears as XAGUSD and platinum as XPTUSD on the same logic.
Because it is written as a currency pair, it reads by the same rules: the first element is the base and the second the quote. See the mechanics in currency pairs.
What a price move means
The price is a ratio between two sides, so a rising XAUUSD alone does not tell you which side moved: gold demand may have risen, or the dollar may have weakened. The distinction matters because it determines what you should follow — US data or safe-haven demand. See the dollar and gold.
A worked example
If XAUUSD trades at 2,400.00, one ounce costs $2,400. A standard contract is 100 ounces, so a $1 price move equals $100 on a full contract and $1 on a 0.01 contract. This is why a small account moves quickly on gold compared with currency pairs — size your trade with the position size calculator.
Common mistakes with this term
- Reading a rising XAUUSD as gold strength, when the cause may be dollar weakness.
- Assuming gold contract size matches forex; a standard gold contract is 100 ounces, not 100,000 units.