In short
- Gold trades as XAU/USD — dollars per troy ounce.
- Retail leverage: 20:1.
- Main drivers: US real interest rates, the dollar, risk sentiment.
How gold is quoted
XAU/USD at 2,384.10 means one troy ounce costs $2,384.10. Contract sizes vary by broker — commonly 100 ounces per standard lot on MetaTrader — so check the instrument specification. In spread betting, you stake £ per point of movement.
What moves gold
- Real interest rates: gold pays no yield, so higher real rates tend to weigh on it.
- The US dollar: a weaker dollar often supports gold.
- Risk sentiment: gold is often bought as a safe haven in times of stress.
- Central bank buying and inflation expectations.
Margin example
A position of 1 ounce per point exposure worth about $2,384 needs roughly $119 of margin at 20:1. A $30 move — common in a single day — changes the position's value by $30 per ounce held.
Costs and hours
- Spreads are wider than on major FX pairs and widen around news.
- Overnight financing applies to daily positions.
- Gold trades almost 24 hours a day, five days a week, with a short daily break at many brokers.
Risk tips
- Gold can move several percent in a day — size positions accordingly.
- US data (inflation, jobs) and Federal Reserve decisions often trigger sharp moves.
- Use stop-losses and consider guaranteed stops over weekends.
Frequently asked questions
What leverage can I use on gold in the UK?
Retail clients can use up to 20:1 on gold.
Why does gold often move opposite to the dollar?
Gold is priced in US dollars, so a weaker dollar makes it cheaper for holders of other currencies and often supports the price.
CFDs and spread bets are complex instruments and come with a high risk of losing money rapidly due to leverage. Most retail investor accounts lose money when trading these products. You should consider whether you understand how they work and whether you can afford to take the high risk of losing your money.