How to trade gold online: a beginner's guide to XAU/USD

Gold is one of the most traded markets in the world, and for Indian traders it has a familiar appeal. Online gold trading is different from buying jewellery or coins, though: you trade the price of gold, usually against the US dollar, without owning the metal.

This guide explains how gold trading works, what moves the price, the best hours to trade it from India, and how to manage risk.

What is XAU/USD?

XAU/USD is the price of one troy ounce of gold in US dollars. “XAU” is the code for gold and “USD” is the US dollar.

• If XAU/USD rises from 2,400.00 to 2,410.00, gold has become $10 more expensive per ounce.
• If you buy (go long), you aim to gain when the price rises.
• If you sell (go short), you aim to gain when the price falls.

With a CFD (contract for difference), you trade these price changes without owning physical gold. Check today's gold price.

Physical gold vs online gold trading

Lot sizes, pips and what a move is worth

Gold is traded in lots. On Xellion, as at many brokers, one standard lot of XAU/USD is 100 troy ounces, so a $1 move in the gold price changes the value of one lot by $100. Smaller sizes are common:

Contract sizes can differ between brokers, so always check the contract details – Xellion's are on the gold price page – and use the profit calculator and margin calculator to see the numbers for your trade.

For beginners, 0.01 lots is the sensible place to start.

What moves the gold price?

Gold reacts to a handful of big drivers:

1. US interest rates and the Federal Reserve – gold pays no interest, so higher rate expectations often weigh on it, and lower rate expectations can support it.
2. The US dollar – because gold is priced in dollars, a stronger dollar often coincides with weaker gold, and the reverse.
3. Inflation data – US CPI releases can move gold sharply.
4. US jobs data (NFP) – the first Friday of most months.
5. Geopolitics and uncertainty – gold is widely seen as a safe haven in times of stress.
6. Central bank buying – large purchases by central banks can support demand.

Read more in what moves the gold price and track release times on the economic calendar.

Best time to trade gold in India

Gold trades almost around the clock on weekdays, with a short daily break. The busiest hours in IST are usually:

• London open: 13:30 IST (winter) / 12:30 IST (summer)
• London–New York overlap: about 18:30–22:30 IST (winter) / 17:30–21:30 IST (summer)
• US data releases: usually 19:00 IST (winter) / 18:00 IST (summer)

See the full timetable in forex market timings in India.

How to trade gold online: step by step

1. Open an account. Xellion's Standard account starts from $50; Raw Spread from $250; Zero Spread from $750.
2. Verify your identity with a photo ID and proof of address.
3. Deposit by UPI. Instant, from $50. Bank transfer and crypto are also available.
4. Log in to MT5, WebTrader or the Xellion app. Find XAUUSD in Market Watch. New to MT5? See our MT5 guide.
5. Decide your direction – buy if you expect the price to rise, sell if you expect it to fall – and write down why.
6. Size the trade. Start with 0.01 lots and use the position size calculator.
7. Set a stop loss and take profit before you place the trade.
8. Place and monitor the trade. Avoid moving your stop loss further away if the price goes against you.
9. Withdraw profits when you want. Bank withdrawals are listed at about 15–20 minutes on the funding page.

Simple approaches beginners use

These are common ways traders approach gold. They are not recommendations, and none of them guarantees a result.

• Trend following: trading in the direction of the main trend on a higher timeframe (e.g. H4 or daily), using a moving average to define the trend.
• Support and resistance: marking levels where the price has turned before and watching how it behaves when it returns.
• Trading around news: some traders avoid holding positions through major releases; others wait for the first move to settle. Spreads can widen sharply around news.

Practise any approach on a free demo account first.

Managing risk when trading gold

Gold can move $20–$30 or more in a day, which is significant with leverage. Keep these rules:

• Use small sizes. At 0.01 lots, a $10 move is $10, not $1,000.
• Always use a stop loss.
• Keep leverage low. Xellion offers up to 1:2000 depending on account and country, but higher leverage means faster losses as well as gains.
• Know your margin. If equity falls below the margin requirement, positions can be closed automatically. Xellion accounts have negative balance protection, so you cannot lose more than your balance.
• Don't risk money you can't afford to lose.

Choosing a gold trading app

When you pick a gold trading app, check:

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