Until now, the XAUUSD currency pair has always been an ideal investment portfolio for traders. Because in addition to its great value, it is also a safe “haven” when inflation occurs. Perhaps, once you learn about XAUUSD, you will pay a lot of attention to the XAUUSD price. So what is XAUUSD? Where should I monitor world gold prices and the XAUUSD chart most accurately? Let’s learn more details with Learn Forex Trading through the article below.
Learn about XAUUSD price in Forex trading
To help readers better understand XAUUSD price in Forex trading. Here is all the information you need to understand regarding XAUUSD.
What is the concept of XAUUSD in Forex?
Gold in exchange rate transactions is denoted by international convention as XAUUSD. It is understood that this is the exchange rate of gold compared to the US Dollar (USD). A clearer explanation of this term is:
- AU: represents the Gold symbol in Latin
- X: suffix representing Forex in currency pairs
- USD: is the currency unit of the US Dollar
=> XAUUSD: is the exchange rate showing the price of gold compared to the US Dollar.
In addition to quoting gold prices in USD, some brokers also quote gold prices in many other currencies around the world. For example gold with the Euro symbol, XAU/GBP… However, the XAUUSD price is still the most mentioned asset when investing in gold.
See more: World gold prices and interesting things about gold
In what unit is the XAUUSD price calculated in Forex?
In Forex, the XAUUSD price will be calculated in US Dollars (USD) per Ounce of gold. When you look at the XAUUSD chart, the XAUUSD price will be displayed as the amount of US Dollars needed to buy 1 Ounce of Gold. For example, if the current price of XAUUSD is 1,800 then you would need 1,800 US Dollars to buy 1 Ounce of Gold.
Convert XAUUSD price in Forex (lot) to real value
In addition, the unit of measurement for the trading volume of the XAUUSD price is also expressed in lots. With 1 standard lot, it will be converted into 100,000 currency units or 100 Ounces. Besides, on some other Forex exchanges, traders can trade gold with volume units smaller than Lots, including:
- 1 standard lot = 100 Ounces
- 1 mini lot = 0.1 standard lot = 10 Ounces
- 1 micro lot = 0.01 standard lot = 1 Ounce
Where can I see Forex gold prices?
For gold investment, viewing and updating the XAUUSD price to predict the trend is extremely important. Traditionally, traders can directly view world gold prices at gold dealers. Or read and research through economic newspapers to update daily buying/selling prices. However, in the current era of technological development, traders can access and view XAUUSD prices easily anywhere, anytime. For example, on websites, phone applications… You just need a smartphone or computer connected to the internet.
Consult sources providing world gold prices
Also because of the rapid development of the financial market in particular. Therefore, traders can refer to many sources of information about Forex gold prices in the world, popularly such as:
- Financial news websites: You can access websites: Investing.com, and Bloomberg… to search for information about XAUUSD price.
- Mobile applications: Some tools and applications specialize in providing information about gold prices. Traders can download and use this application on their mobile phones to update gold prices more conveniently.
- Websites of Forex trading exchanges: Reputable brokers often provide charts and gold price information directly for investors to refer to. By simply accessing your trading account, traders can view the XAUUSD price in extreme detail.
What information does the XAUUSD chart show?
Normally, information about Forex gold prices will be shown in the form of a trading chart of the XAUUSD pair in Forex. Based on the indicators, the volatility of XAUUSD is shown quite clearly. Some important information displayed on the XAUUSD chart includes:
- Opening hours (Open): Gold price when trading time begins.
- Closing price (Close): Gold price when the trading period ends.
- Highest price (High): The highest gold price in a certain period.
- Lowest price (Low): The lowest gold price in a certain period.
- Trading Volume (Volume): Indicates the quantity and liquidity of XAUUSD price during a certain time.
Instructions on how to view the XAUUSD price chart
Viewing and reading the XAUUSD price chart is also quite simple. Includes 4 basic elements:
- Chart classification: There are many types of charts showing gold prices: Japanese candlestick charts, lines, bars, Renko charts…
- Chart time frame: The purpose is to understand whether you are viewing gold prices hourly, daily, weekly, monthly, or yearly. Choosing a chart viewing time frame depends on each trader’s strategy.
- Analysis tools on the chart: Traders can use technical indicators to insert into price charts. Or look at the shape of the candlestick chart to analyze the XAUUSD price.
- Gold price trend: Traders can determine the trend of gold price based on technical indicators: RSI, CCI, MACD…
Why do traders need to know about the XAUUSD price?
As a trader choosing to invest in gold in your portfolio, you must know clearly about the XAUUSD price, because:
Adjust your Forex gold trading strategy based on liquidity
Liquidity is an extremely important factor that traders need to consider when trading gold, especially in trading XAUUSD. Therefore, by being aware of the XAUUSD price trend, traders can adjust their strategies based on liquidity to take advantage of opportunities and minimize risks in the market.
Take advantage of the most suitable opportunity through the XAUUSD price
Second, when knowing the current XAUUSD price, traders can accurately identify the trend. If you realize this is a good opportunity, investors can quickly seize the opportunity and invest in gold. Participating at the right time is an extremely important factor, capable of determining up to 50% of the transaction success rate.
When should you trade Forex gold?
So when is the right time to trade Forex gold? As a trader, you surely know that when the session coincides, price fluctuations will be extremely exciting, causing trading opportunities to expand. According to UK time, there is a period when both trading sessions are open at the same time. That is from 14:00 to 15:00 when the Tokyo and London sessions overlap. From 20:00 to 23:00, the London session and the New York session are open together. In particular, the best time to trade gold during the day is when the London and New York markets operate together.
What factors are the XAUUSD price affected by?
Third, to accurately identify the XAUUSD price trend. Traders need to analyze the influence of Forex gold prices from surrounding factors. Some factors that can potentially impact the XAUUSD price that investors need to pay attention to are:
- USD value: According to market trends, when the US Dollar increases, world gold prices will decline.
- Central Bank’s gold reserve policy: If gold reserve terms are changed, gold supply and demand will be strongly affected. Since then, the price of gold has been pushed up or vice versa.
- Economic indicators: Indicators showing inflation and interest rate changes are also some of the factors that directly impact the XAUUSD price increase/decrease.
- Supply-demand relationship: At times when the demand for gold storage is high, the supply cannot meet it. Gold prices can increase dramatically or decrease unexpectedly.
How to trade Forex through gold?
Although the XAUUSD price is a very profitable investment portfolio, how to trade Forex through gold effectively is quite difficult for traders. So the next piece of information is the secret for you.
How to trade gold based on the XAUUSD price
There are several ways to trade gold based on the XAUUSD price that traders can apply:
- Trend trading: In this method, traders look for the main trend of gold prices and open orders accordingly. If the price increases, traders can open a buy order, and vice versa, if the price decreases, traders can open a sell order.
- Trade gold using support and resistance levels: Investors can rely on technical analysis tools to determine market entry/exit points. For example, a buy signal can be confirmed when the price breaks a resistance level and continuously increases.
- Apply technical indicators: Some popular indicators such as RSI, MA, and Bollinger Bands… can be used to find entry/exit points in the market.
Tips for successful Forex gold trading
Besides gold trading strategies, to be successful traders need to be flexible in investing. At the same time, apply some trading tips drawn from experts to increase trading performance as follows:
- You should choose and implement strategies that are suitable for your trading style.
- Traders need to spend time learning information about the market, economics, and politics. Because these are sources of information that are useful for your trading.
- Learn how to make good use of pending orders, Stop Losses, and Take Profit in trading to promptly cut losses and optimize profits when trading gold.
- Always follow the established strategies and do not let emotions influence trading decisions.
Which trading platform should you choose to trade Forex through gold?
When choosing an exchange to invest in Forex through gold, besides factors such as XAUUSD price, strategy, indicators, XAUUSD chart… Another important thing that traders need to pay attention to is choosing an exchange. reputable translation. So how can you choose a quality gold trading broker? You can apply and make decisions based on some of the criteria below:
3 main criteria to help you choose a reputable Forex trading exchange
Criteria for choosing a reputable Forex trading exchange will include 3 basic things:
Consider the safety level of the exchange through the sponsoring company and fund
First, traders should consider the Broker’s safety level through legal operating licenses. At the same time, the selected trading platform must always comply with the regulations of financial management agencies such as FCA, ASIC, CySEC… Besides, investors must check and learn about the sponsoring fund that supplies the exchange. This ensures that you will be compensated in case the exchange experiences financial problems. Furthermore, an umbrella fund can also provide peace of mind and ensure minimal risk for traders.
Evaluate cost factors when trading Forex on the exchange
Second, you should evaluate the Forex exchange based on the transaction cost factors of the Broker. Some prominent fees that any trader is interested in are spread, Swap, deposit, and withdrawal… Thereby, determine whether they have a significant impact on your profits or not. Keep comparing with other exchanges to make your decision easier.
Prioritize choosing a Forex trading platform that fits your strategy
Third, traders should prioritize choosing Forex trading platforms that suit their strategy through factors: leverage, trading tools, and customer support services… Make optimal use of the Tools and services provided to help your transactions be conducted easily and effectively.
See more: Instructions for registering an Exness account
Some exchanges allow Forex trading through high-quality gold
To save time learning and choosing a Forex trading platform for traders. Today, Self-study Forex has selected for readers the top 3 brokers providing the highest quality XAUUSD price investment services today.
- Exness exchange: Perhaps Exness is a familiar name to investors because of its rich history and reputation that this broker brings. Not only does Exness provide customers with quality gold investment services, but it also expands many other popular trading products such as gold, foreign exchange, stocks, cryptocurrencies…
- XTB Broker: The second name mentioned is the XTB exchange. With 22 years of experience in the market, XTB has 13 representative offices around the world. At the same time, it is licensed and recognized by a series of leading financial organizations in the world: FCA, CySEC, IFSC, FSA…
- XM trading platform: Finally, the XM trading platform is indispensable. Starting operations in the financial market in 2009, XM has now attracted more than 3.5 million customers from 196+ different countries. With 16 trading platforms, more than 30 supported languages, 25+ payment methods… There is no reason why you should not choose XM to be your reputable companion.
summary
Although the XAUUSD price is an investment portfolio that can bring traders a lot of profits. But besides that, investors still need to prepare a detailed plan and apply appropriate strategies to achieve the best trading results. Hope that Learn Forex Trading Shared above will be useful investment knowledge to help traders be more successful in trading XAUUSD.
FAQs:
What factors can the XAUUSD price be affected by?
XAUUSD is considered a fairly safe “haven” asset pair. However, it is still seriously affected by factors such as USD price, gold reserve policy, supply and demand relationship, economic indicators, and political situation…
Is trading Forex through gold in the UK illegal?
Currently, the number of traders participating in gold trading activities in the UK is quite large. Because this is an open form of investment, not within the scope of State Law. That means you will not violate the law when trading gold, but you will also not be protected when you encounter problems.
What risks are there when trading Forex gold?
The risks when trading XAUUSD price often come from not understanding the exchange clearly. The cause may stem from market risks, technical risks, or legal risks.
