Gold (XAU/USD) overview
Spot gold is quoted in US dollars per troy ounce. It is one of the most heavily traded CFD instruments on the planet — both a safe-haven asset in equity drawdowns and a real-rates trade that benefits when inflation outpaces nominal yields.
What moves gold
- Real US yields — the single largest driver. Falling real rates = gold up.
- US dollar index (DXY) — strong inverse correlation, typically –0.7 over 90 days.
- Central bank demand — emerging-market central banks have been net buyers since 2022.
- Geopolitical risk — Middle East, US-China tensions trigger safe-haven bids.
- Inflation prints — CPI surprises move gold 1–2% intraday.
Typical spread
XAU/USD spreads run 15–35 cents on ECN-style brokers, 40–80 cents on standard accounts. Watch overnight swap fees — gold can have meaningful financing costs on leveraged positions.