If you trade gold, this is one of the most common questions you’ll hear—especially from traders coming from EURUSD or USDJPY.
On MT4 and MT5, XAUUSD sits right next to forex pairs like EURUSD and USDJPY. It looks like a forex pair and it executes like a forex pair. That’s why many traders casually call it “forex.”
But here’s the truth: XAUUSD is not a forex pair in the strict sense. It’s gold priced in US dollars. If you treat it like a normal currency pair, your analysis and risk management usually won’t match how gold actually moves.
What XAUUSD Really Means
XAUUSD represents the price of gold quoted in US dollars. In most trading platforms, XAU typically refers to one troy ounce of gold priced in USD.
- XAU = the ISO-style code for gold
- USD = United States Dollar
- XAUUSD = the value of gold expressed in USD
XAUUSD is gold first, currency pricing second. You’re trading a metal market, with USD as the quote currency.
If you want to verify the ISO-style codes that markets use (including metals like XAU), you can check the ISO 4217 reference here: ISO 4217 Currency & Metal Codes.
Is XAUUSD Considered Forex?
Strictly speaking, no. Forex is currency versus currency (like EURUSD, GBPJPY, USDJPY). Gold is a commodity—so XAUUSD is best classified as a commodity quote.
Why traders still call it “forex”
In real trading, XAUUSD is offered on the same platforms, with the same order types, and often the same account infrastructure as forex pairs. Many brokers place it under “Forex” or “Metals,” depending on how they categorize instruments on their platform.
When people say “XAUUSD is forex,” they’re usually describing the platform environment, not the underlying asset class.
Why XAUUSD Is Actually a Commodity
Gold is a physical commodity (a precious metal). Its price is influenced by supply/demand forces that don’t apply to currency pairs. Even when you trade XAUUSD as a CFD, the pricing still tracks the global gold market.
Gold prices are influenced by:
- Mining supply and production costs
- Jewelry and industrial demand
- Central bank buying and reserves
- Inflation expectations
- Interest rates and real yields
- Risk sentiment and geopolitical uncertainty
Why XAUUSD Moves Differently From Forex Pairs
This is the part that matters for your trading. Gold typically moves faster, reacts harder to major news, and loves liquidity hunts. Many traders blow accounts not because their “strategy is bad,” but because they treat gold like EURUSD.
XAUUSD is known for:
- Higher volatility and faster price movement
- Stronger reactions to US news and rate expectations
- Aggressive stop hunts around obvious highs/lows
- Sharp reversals when sentiment flips
Gold tends to respect liquidity, structure, and timing more than lagging indicators. If you trade it with a “forex mindset,” you’ll often get chopped.
How Brokers Offer XAUUSD (What You’re Actually Trading)
Most retail brokers offer XAUUSD as a Spot Gold CFD. You’re not buying physical gold. You’re trading a contract that tracks the gold price, which is why spreads, swaps, and leverage apply.
Useful references (optional): CME Group – Gold Overview | IC Markets – Metals Trading
A Simple Rule to Avoid Confusion
If an instrument starts with XAU, it’s gold. If it starts with XAG, it’s silver. These are metal commodity codes, not currencies.
Forex pairs look like EURUSD, GBPJPY, USDJPY—currency versus currency. XAUUSD is different: it’s metal versus currency.
Final Answer
XAUUSD is a commodity instrument (gold) priced in USD. It trades through forex/CFD platforms, which is why it looks like a forex pair—but its behavior is driven by the gold market.
