XAU/USD

XAU/USD (spot gold) behaves more like a macro asset than a currency pair. Its moves are driven by real interest rate expectations (gold pays no yield so its opportunity cost rises with rates), USD strength, geopolitical risk premiums, and central bank reserve accumulation. These factors create multi-month trending periods that dwarf typical FX pair trend durations.

For EA traders, gold’s large ATR is both an opportunity and a capital requirement. A single XAU/USD lot is $100 per pip at standard sizing — compared to $10 per pip for a forex major. EAs deploying the same lot size on XAU/USD as on EUR/USD are taking 10x the per-pip risk. This is why EAs designed for gold either use micro-lot sizing (0.001 standard = $0.10/pip) or require larger minimum deposits.

Spread and execution: gold spreads are 2.0–4.0 pips typical on most brokers, widening significantly during major data releases. For an EA targeting 30-50 pip gains, this is a 4–10% cost of trade — meaningfully higher than a EUR/USD scalper’s 1.5–3% spread cost. Strategies must target larger pip moves to justify the entry cost; M15 or H1 trend-following is typically more suitable than M1 scalping.

Session note: XAU/USD sees its highest volume and tightest spreads during London session (07-16 UTC). Overnight sessions (Sydney/Tokyo) produce thinner conditions with higher false-breakout probability.