How to Trade Gold (XAUUSD): A Complete Guide

The King of Assets

Gold (XAUUSD) is the most popular asset for retail traders for one reason: Volatility. It moves fast, and it moves far.

1. Correlations

Gold is inversely correlated to the US Dollar (DXY).

• Dollar Strong ➔ Gold Weak.
• Dollar Weak ➔ Gold Strong.
• Always check the DXY chart before trading Gold.

2. The Sessions

• Asian Session: Usually consolidates (accumulates orders).
• London Open (3 AM EST): Often creates a "Fake move" or breakout.
• NY Open (8 AM EST): The real volume enters. This is where the biggest trends happen.

3. Psychology Level

Gold loves round numbers.

• 2000.00
• 2025.00
• 2050.00 Price will often magnetize to these levels and react violently.

4. Safe Haven Status

In times of war or economic fear, investors dump cash and buy Gold. Headlines move this pair more than any other.

Warning: Gold spreads can be high. Ensure you are using a raw spread broker.