Gold metal is popularly traded in the online financial markets. Because Gold is one of the precious metals its price is determined and quoted in terms of US Dollars at any one given time. Anyone can then buy or sell gold either physically in the form of gold bars or using the more popular method - selling and buying gold online in the form of contracts.

Gold contracts online are traded the same way as shares, investors will make money when the value of their shares or stocks moves up and make a loss if the price of their share or stocks moves down.

## Gold Contracts

When it comes to online Gold metal trading, gold is traded as a contract; one contract of Gold is made up of 100 ounces. Therefore when a trader is trading gold online then they will be buying or selling a contract that is equal to 100 ounces of Gold.

The prices of Gold will be quoted by the online Gold trading broker and a trader can buy or sell gold contracts at the current quoted price.

Because Gold is quoted against the US Dollar, the trading symbol will be XAUUSD; meaning the price of gold quoted against the US Dollar.

Price of Gold - Gold Price Quotes

The Price of Gold is quoted as show above using the Bid and Ask Price

• Bid is the price at which you buy
• Sell is the price at which you sell

The trading symbol of Gold is XAUUSD, but in the above example it is just written as Gold.

The current price quote of Gold is 1267.11

This means that a trader wanting to buy one contract of Gold would buy at the price of 1267.11

Gold is quoted using two decimal digits in the case above the last two decimal digits are .11

The last decimal point is used to calculate the profit and losses of trades, the last point is known as a 1 pip or one point.

When trading Gold one pip represents a movement of \$1

If the price were to move up from 1267.00 to 1268.00 this would represent a price move of one dollar, but because gold is traded in contracts of 100 ounces, this \$1 dollar move would be multiplied by 100, the contract size, therefore a move from 1267.00 to 1268.00 would give the trader a profit of \$100.

Because a move from 1267.00 to 1268.00 represents 100 decimal points moves, this means each decimal point digit represents a profit equivalent to \$1 per 1 pip (0.01 price move).

## Opening a Gold Chart

To open a Gold trading chart, a trader can open this chart from the gold trading platform, MetaTrader 4 platform from the "File" menu as shown below. Then select "New Chart" option.

A trader can then choose Gold Metal or XAUUSD Metal, from the "Spot Metals" option shown below after clicking the New Chart option.