Backtest XAU/USD for free
Gold (XAU/USD) is priced in US dollars per ounce. It attracts traders because it moves a lot, but that same volatility is why position sizing matters more here than on any currency pair.
XAU/USD at a glance
- Contract: 1 standard lot is 100 ounces on most brokers
- Price move per $1: about $100 per lot
- Busiest: London and New York, around US data
- Moves on: US dollar, real yields, inflation, safe-haven demand
How XAU/USD behaves
Gold can move several dollars in minutes, especially around US data and central bank news. It often rises when real yields fall or when markets are nervous.
What moves XAU/USD
- US interest rates and real yields (gold usually pays nothing, so rising yields hurt it)
- The US dollar: a stronger dollar tends to weigh on gold
- Inflation expectations, central bank buying and geopolitical stress
Tips for backtesting XAU/USD
- Use a smaller risk per trade than on currency pairs
- Check your broker contract size before sizing
- Backtest US data days on their own
Frequently asked questions
What moves gold prices?
Mainly the US dollar, real interest rates, inflation expectations and safe-haven demand during uncertainty. Central bank buying also plays a role.
How do I size a gold trade?
Use the same formula as for currencies, with the right contract size: with 100 ounces per lot, a $1 move is worth about $100 on one lot. A 5 dollar stop on 0.2 lots risks about $100.