One of the popular investment instruments is the gold commodity. XAU gold investments in it have always been considered one of the most reliable. Gold price per ounce is most popular as a protective asset during periods of economic and political crises, instability, and financial turmoil.
But to start the gold trade today, you need to know exactly how the gold commodity is denoted in Forex. On Forex, gold is easy to determine by three capital letters – ХАU.
What then is XAU meaning? The letter X is the letter from the word Forex, while AU is the chemical designation of gold (aurum).
It is possible to sell and purchase gold today for US dollars (USD). The XAUUSD represents the gold value per ounce in US dollars. In other words, it tells you how many US dollars you would need to buy 1 gold price per ounce. Although traditionally the precious metal prices per ounce have tended to move inversely to the US Dollar, this is no longer the case due to an increase in geopolitical uncertainty.
Now that you understand XAU’s meaning in Forex, you can quickly respond to changes in gold price trends, thereby making more successful transactions.
Because XAUgold is one of the popular investment instruments, many people choose the best gold broker with qualities such as:
Real-time price of gold
To navigate the dynamics of the gold market price and build the right investment strategy, it is necessary to constantly monitor the information available on the gold price graph.
The cost of gold per ounce fluctuates daily. When trading gold CFD on an online exchange, the behavior observed in the gold price chart should be taken into account.
To determine the gold price trend, analysts use the moving average method, as well as special tools such as the Stochastic Oscillator, or RSI. Gold technical analysis of the correlation between changes in a gold rate today and the rates of leading world currencies is often carried out. The basic principle underlying the analysis is that live gold price change with a delay in the movement of currencies. It is recommended to study the movement of the gold price index on several gold futures bar charts at the same time.
Fundamental factors greatly influence the oz of gold price. Such forex indicators for gold rate today are always taken into account since XAU gold at all times belonged to the category of safe-haven assets. In any turbulent period of the economy, investors should know the gold selling price and transfer their funds into gold CFD.
Gold price news
XAUUSD news affects the gold price in dollars, so you can make good money on gold price news. Trading gold forex based onXAUUSD news is chaotic, but with a quick reaction, it can give a good result. The current gold price is especially influenced by gold price news about incidents and economic shocks, which indicate the imminent rise in the gold price today since in such situations it again tries on the role of a safe-haven asset.
If you are a novice XAUUSD forex investor, it is recommended to make a decision based on basic strategies – analysis of XAUUSD news and correlation of currency pairs. Experienced traders use all gold technical analysis tools, using both basic and behavioral strategies for decision-making.