You might have noticed an increase in traders trading the XAUUSD (Gold) in the Forex market and it has become very popular at the moment. So here is a detailed blog for you in very simple language about what is XAUUSD, how to trade in XAUUSD (Gold), … etc.
🔸What is XAUUSD?
XAU means Gold, Gold’s international symbol is XAU.
USD means US Dollar and USD is an international currency i.e. XAUUSD (International Gold).
As International Gold is pegged to the USD currency, it is available for trading in the XAUUSD pair. XAUUSD is measured in ounces while the price of 1 ounce xauusd shows in USD currency.
Example: If you see the price of xauusd at 3000 on the chart, then the rate of 1 ounce of XAUUSD (gold) is $3000.
🔸Why Trade in XAUUSD(Gold)?
1. High volatility – high volatility so high liquidity, technical analysis works perfectly, so it is best for every trader.
2. When You trade in XAUUSD on an FX platform you can use High Leverage for Small capital but Big profits.
3. Fx Market Open 24 Hours so you Trade in XAUUSD as per your timing.
🔸Who influences the price of gold?
1. USD – XAUUSD (gold) always moves in the opposite direction to USD, so when the price of USD increases, the price of USD decreases, and when the price of USD decreases, the price of XAUUSD increases.
2. News and Events – Since XAU is linked to USD, news related to USD affects XAUUSD. Depending on the outcome of the news, it can be positive or negative.
example, News on Federal Reserve, GDP, NFP, … etc. For more information, visit forexfactory.com
3. Global Stress – XAUUSD (gold) is the safest asset. Whenever there is uncertainty, the stock market is falling, there are situations like war… At that time, all these affect gold and the price of gold increases.
🔸 For beginners
✅ Always use stop loss orders
✅ If you are a new trader, do not trade during news hours
✅ When trading, always take or not take trades according to your setup or strategy
✅ Always follow risk and money management and trading rules
✅ Use a demo account to practice
🔸Conclusion
If you want to learn or are learning Forex market trading then XAUUSD (Gold) trading is a great option, but first you should get complete KNOWLEDGE related to it and practice.
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