Gold is one of the many metals that are traded every day. It is a versatile instrument and has a huge market. Many Asian families consider it an asset and buy physical gold regularly that could be given to the next generation as a present or be sold later at a higher price should there be an emergency. There are many ways in which you can trade this commodity. Traders and investors are moving away from buying physical gold as it is more exp0ensive. Other than the manufacturing cost, you are likely to pay for a locker with a bank to keep your investment safe. Transactional cost is also involved when you liquidate this instrument. All these factors have paved the way for electronic gold.
Trading gold is easier than trading other instruments. Along with brokers, many banks also offer direct buying and selling of electronic gold. You can easily keep an eye on your investment using banking apps.
Below is a video from one of our articles where we described how to calculate gold pips:
A pip is a decimal movement in the price of an instrument. It is the minimum possible difference between the trading and exchange rate of a currency pair. The value of pip differs from instrument to instrument.
Pips in gold are generally $0.01. It means that you can lose or gain $0.01 whenever the gold pips move.
How to Calculate Gold Pips in Forex?
Calculating pips for gold does not require you to be a mathlete. You can use a simple unitary method to calculate pips on gold. You need to know how many pips are required to gain $1. Once you have calculated that, you can take the calculation further.
$0.01 = 1 pip
$0.01*x = $1
X = $1/$0.01
X = 100
Therefore, 100 pips are equivalent to $1.
XAUUSD pip count with a detailed description, you can read in our article.