How to Trade Gold: Contracts, Sizing and What Moves the Price
Trading gold means buying or selling its dollar price, usually through COMEX futures in the US or as an XAU/USD CFD elsewhere. It is one of traders’ favourite markets for its liquidity and wide moves, which is exactly why size matters: one GC contract is 100 ounces, so each dollar of movement is $100 per contract.
Ways to trade it
| Instrument | Size | $1 move |
|---|---|---|
| GC (COMEX future) | 100 oz | $100 |
| MGC (micro) | 10 oz | $10 |
| XAU/USD, 1 lot (CFD, outside the US) | 100 oz | $100 |
What tends to move gold
- The dollar: gold is priced in dollars, so a stronger dollar tends to weigh on it.
- Real interest rates: gold pays no interest; when bonds pay more after inflation, holding it costs more.
- Central banks: their buying of gold for reserves supports demand.
- Fear: in crises and geopolitical tension it acts as a safe haven.
That is why it reacts strongly to Fed decisions and US CPI: follow them in the news.
Trading hours
Gold futures trade almost 24 hours, Sunday evening to Friday afternoon New York time. The busiest moments are usually the London open, the New York open and US data releases at 8:30 a.m. ET.
How to size a trade
With $100 at risk and a $5 stop: on MGC, 100 ÷ (5 × 10) = 2 contracts; on GC, the minimum of 1 contract would risk $500. A normal day in gold can move tens of dollars, so the micro is the sensible start for small accounts. MGC calculator · where to put the stop.
Contract sizes from CME (COMEX). Information only, not investment advice.
Example: how much gold on a $10,000 account
At almost every broker one lot of XAU/USD is 100 ounces, so each dollar the price moves is $100 per lot. With a $10,000 account and 1% risk ($100), a $10 stop on the price allows 0.10 lots, that is, 10 ounces.
With futures the sum is the same with other sizes: GC is 100 ounces ($100 per dollar) and MGC is 10 ounces ($10). With that same $10 stop, one GC risks $1,000 and one MGC $100: with $10,000 and 1% risk only one micro fits.
Gold reacts sharply to US data such as CPI or the jobs report, so check the calendar before opening a trade. Always check the lot size at your broker: some use 1- or 10-ounce contracts.
Frequently asked questions
How big is a gold lot?
At most brokers, 100 ounces: each dollar the price moves is $100 per lot, and $1 per 0.01 lots. Check your broker’s specification.
What moves the gold price?
Mostly the dollar (gold is priced in dollars) and real interest rates: since it pays no interest, it tends to suffer when they rise and benefit when they fall. Central bank buying and safe-haven demand in crises also matter.
How do I trade gold in the US?
Mostly through COMEX futures: GC (100 oz) or the micro MGC (10 oz). Gold CFDs are not offered to US retail traders.
What is the difference between XAU/USD and the GC future?
XAU/USD is the spot price, which brokers outside the US offer as a CFD; GC is the COMEX future, with an expiry date and exchange-set margin.