CandleGPTTrading gold (XAUUSD): what to know before your first trade
Gold is one of the most traded markets by retail traders, and one of the fastest to empty an account. Not because it is unpredictable, but because it moves much more than a currency pair for the same lot size. Here is what to know: what moves it, what one lot is worth, and how to size your stop.
What one lot is worth
On most brokers, 1 lot of XAUUSD = 100 ounces. So:
| Gold moves by | 1 lot | 0.10 lot | 0.01 lot |
|---|---|---|---|
| $1 | $100 | $10 | $1 |
| $5 | $500 | $50 | $5 |
| $20 | $2,000 | $200 | $20 |
Some brokers use a different contract size: check it in MetaTrader (right-click the symbol → Specification). This is the most common surprise for traders coming from EURUSD, where 1 lot moves about $10 per pip.
What moves gold
- The US dollar. Gold is priced in dollars: a stronger dollar tends to weigh on it, a weaker one to support it. Not always, but often.
- US interest rates. Gold pays no interest. When real US rates (rates minus inflation) rise, holding gold costs more in missed interest.
- US figures and the Fed. NFP, inflation (CPI) and Fed decisions often cause gold's fastest moves (see the news guide).
- Fear. Wars, crises and market stress can push investors towards gold.
- Central bank buying and physical demand (India, China) move it over months, not minutes.
When it moves
Gold is usually most active at the London open and during the London–New York overlap, especially at 14:30 Paris time when US figures come out. The Asian session is often calmer. Around the daily rollover (about 23:00 Paris time), spreads can widen a lot (see sessions).
How to size the stop
A stop that is too tight on gold gets hit by normal noise. A simple way to see how much gold moves is the ATR indicator (Average True Range) in MetaTrader: it shows the average size of a candle on your timeframe. Many traders put the stop beyond the level that proves them wrong, then check that it is not smaller than about one ATR.
Then the size follows. Example: $5,000 account, 1% risk ($50), stop $10 away from entry. With 100 ounces per lot, each 0.01 lot loses $10 on that distance: 0.05 lot gives about $50 at the stop. The position size guide has the formula.
The mistakes that blow gold accounts
- The same lot size as on EURUSD. 1 lot on gold with a $10 stop is a $1,000 loss.
- Being in a trade at 14:30 on NFP or CPI day without knowing. A $20 to $30 move in a few minutes is not unusual on those days.
- Moving the stop because "gold always comes back". Sometimes it does not, for days.
- Trading the quiet Asian hours like the US open. The same strategy rarely works in both.
Before trading gold seriously, export your history and look at your results on XAUUSD alone: many traders find that gold, not their strategy, is where most of their losses are.
CandleGPT does this for you, in MetaTrader
CandleGPT uses your broker's real contract size for gold: it shows the money at risk before you click Buy, and the alert appears on your MetaTrader chart if the position is too big for your account.
See plansTrading involves a high risk of losing money. This guide is educational: it is not investment advice and does not tell you what to buy or sell. Past results do not predict future results.