Why gold moves
Gold pays no interest, so it competes with assets that do. When real interest rates rise, gold tends to fall; when they fall, gold tends to rise. Because it is priced in dollars, a stronger dollar also tends to weigh on it. Most large moves in gold can be traced to one of those two forces, or to a shock that sends investors looking for somewhere safe.
The releases that matter
US inflation data, the Federal Reserve's rate decisions and the monthly US employment report move gold more reliably than anything else on the calendar. The economic calendar on this site marks them. Most of the rest is noise for gold specifically.
The hours that matter
Gold trades almost around the clock but the liquidity is not even. The London session, roughly 07:00 to 15:00 GMT, and its overlap with New York, 12:30 to 15:00 GMT, carry most of the volume and the tightest spreads. The daily break and the Asian open are when spreads widen. Plan entries for the liquid hours and avoid holding tight stops through the break.
Contract, cost and swap
On our platform gold is XAUUSD, contract size 100 troy ounces, so one standard lot moves $100 per $1 change in price. Read the swap in the specification before holding overnight: the financing cost on gold is not trivial over a week.
Sizing for gold
Gold moves in dollars, not pips, and a normal day's range can be $30 or more. Size the position from the money you are prepared to lose and the distance to your stop in dollars, not from what the leverage allows. The position sizing guide walks through the arithmetic.
