Trading Gold (XAUUSD)

Gold is a unique asset — it's a commodity, a currency, and a safe haven all in one. This triple nature creates predictable trading patterns.

What Moves Gold

1. USD Strength — Gold has an inverse relationship with the dollar. Strong USD = lower gold prices
2. Real Interest Rates — Gold thrives when real rates are negative or falling
3. Geopolitical Tensions — Wars, sanctions, and crises drive gold up
4. Central Bank Buying — Central banks buying gold creates a price floor
5. Inflation — Gold is a traditional inflation hedge

Best Times to Trade Gold

• London Open (3 AM EST) — Gold volume spikes
• US Open (8:30 AM EST) — Biggest moves come from US data (NFP, CPI, Fed)
• Asian Session — Gold often ranges; good for mean reversion

Gold Trading Strategies

Supply/Demand Zones

Gold respects round numbers ($2,000, $2,050, $2,100). These act as magnets. Mark the key levels before the session.

News Reaction

Gold moves 20-40 pips on major US data within 30 minutes. Wait for the initial spike to settle, then trade in the direction of the move.

Trend Following

50-period and 200-period moving averages work very well on gold daily charts. Respect them.

Risk Management for Gold

• Gold is volatile (average ATR: 1,500-2,500 pips/day)
• Use wider stops than forex pairs
• Lower leverage (1:10 max recommended)
• Never hold through major news without a stop

Treat every gold trade as a learning opportunity — log it in your journal with screenshots of the setup.