Gold is one of the most popular instruments for intraday traders: it moves a lot, it respects technical levels, and it trades nearly 24 hours. Silver follows gold in direction, usually with bigger percentage swings.
Why gold moves
- Real interest rates: gold pays no interest, so when inflation-adjusted bond yields rise, holding gold costs more in lost income.
- The US dollar: gold is priced in dollars; a stronger dollar makes it more expensive for everyone else.
- Safe-haven demand: in wars, crises and market crashes, money flows into gold.
- Central banks: large purchases by central banks have been an important source of demand in recent years.
Contracts and quotes
| Instrument | Size | Value of a $1 move |
|---|---|---|
| Gold futures (GC) | 100 troy ounces | $100 (tick 0.10 = $10) |
| Micro gold (MGC) | 10 troy ounces | $10 (tick 0.10 = $1) |
| Spot gold / CFD (XAU/USD) | Often 100 oz per lot; varies by broker | Often $100 per lot |
| Silver futures (SI) | 5,000 troy ounces | $5,000 (tick 0.005 = $25) |
Worked example
You buy 1 lot of XAU/USD (100 oz) at $2,350 with a stop at $2,342.
Risk = $8 × 100 = $800. A $20 move in your favour is worth $2,000. Gold often moves $20–40 in a day, so size carefully.
When gold is most active
Gold wakes up at the London open and is busiest during the London–New York overlap, especially around US data at 08:30 New York time. Asian sessions can be quieter, though Chinese demand and news sometimes move it there too.
Key takeaways
- Gold is driven by real interest rates, the dollar, safe-haven demand and central bank buying.
- Silver usually follows gold's direction with larger percentage swings.
- A standard gold contract is 100 ounces: each $1 move is $100; micro gold is 10 ounces.
- Gold is most active in London and the London–New York overlap.