I've noticed that many beginners get confused about what XAU is and how to trade it. In reality, it's quite simple.

XAU is essentially the quote for one troy ounce of gold in dollars. It is denoted as XAU/USD. And yes, gold is traded even more actively than many cryptocurrencies if you look at the volumes.

Why do people trade gold at all? Several reasons. First, it’s a classic safe haven. When wars, crises, or inflation start, people flock to gold. Second, it hedges inflation, meaning it protects purchasing power. Third, the liquidity is simply enormous; trading volumes make it easy to enter and exit positions. And also — the volatility is decent for scalping and day trading.

How does all this work in practice? Gold mainly moves depending on the strength of the dollar. When the dollar weakens, gold usually goes up. When the dollar strengthens — gold falls. Plus, interest rates, inflation data, global news, and geopolitics influence it.

One important thing: XAU is not a cryptocurrency. It’s a physical commodity traded on forex and futures markets. Yes, there are platforms with gold tokens, but real XAU is precisely the price of physical gold on the market.

If you trade, the main thing is to follow the trend and not forget about risk management. Leverage on gold should be kept moderate; no heroics are needed. Gold can be volatile, but that’s no reason to risk more than you can afford to lose.