What is XAUUSD and how to read the quote
XAUUSD is the most traded way to speculate on gold against the US dollar. Before you trade it, you should be able to look at a quote and know how many dollars one move is worth. This guide shows how.
Last updated 2026-10-05 · Educational content, not investment advice
What the symbol means
XAU is the market code for one troy ounce of gold, and USD is the US dollar. A quote of 2,000.00 means one troy ounce of gold costs 2,000 US dollars. Many retail platforms offer XAUUSD as a CFD, a contract that follows the price rather than giving you the metal.
Bid, ask and spread
You will see two prices. The ask is what you pay to buy and the bid is what you receive when you sell. The gap between them is the spread, and you pay it every time you open a position. See what spread really costs.
Contract size and the value of a move
A contract size of 100 ounces per 1 lot is common, but it varies by broker and account type, so check yours. With 100 oz per lot, a 1 USD move in the gold price is worth 100 USD on 1 lot, and 1 USD on 0.01 lot.
Profit or loss = price move in USD × lots × contract size
Example: price moves from 2,000.00 to 2,005.50, a move of 5.50 USD. On 0.05 lot that is 5.50 × 0.05 × 100 = 27.50 USD. On 1.0 lot it would be 550 USD, and on 0.01 lot 5.50 USD.
Hypothetical numbers to explain the formula. They are not market data and not a trading recommendation.
What it ties up and what it costs
The same 0.05 lot at 2,000 USD has a notional value of 2,000 × 0.05 × 100 = 10,000 USD. At leverage 1:100 the margin is 100 USD. With a 0.3 USD spread, the cost of opening is 0.3 × 0.05 × 100 = 1.50 USD. Try your own numbers in the margin calculator and the profit and loss calculator.
A note on pips
Brokers and platforms define a gold pip differently (some use 0.10 USD, some 0.01 USD). To avoid confusion, this site always works in dollars per ounce. If you use pips, confirm how your platform defines one before sizing a trade with the lot size calculator.
Related tools
Gold XAUUSD profit and loss calculator
Net result after spread and commission
Open tool →Gold XAUUSD margin calculator
How much margin a gold position locks up
Open tool →Gold XAUUSD lot size calculator
Lot size from the amount you can afford to lose
Open tool →Limits and risk
This tool is educational. Results are estimates from the numbers you enter and are not investment advice. Trading CFDs is high risk and you can lose everything. Read the full risk warning