E XAUUSD Daily Pip Range - One Of The Most Volatile Pairs

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The volatility in trading has a huge impact on the trading results because traders like to trade pairs that are volatile. 

That means they can enter into trade and be sure that there will be an opposite side to take the trade when they want to buy or sell a currency pair.

Low volatile pairs, like AUDUSD, are traded less and consequently the pip range is very low compared to the XAUUSD pair.

What is XAUUSD?

XAUUSD means Gold against U.S. dollars in foreign currency exchange. XAU is a combination of prefix X and AU which is a chemical sign of gold.

X is added in front of AU because of the ISO standard. If we do not put X in front AU then there can be confusion when using Australian Dollar which is written as AUD.

So, to differentiate between these two, AU and AUD, the X prefix is added before AU. XAU is also the ticker for the Spot Gold exchange.

XAUUSD Daily Pip Range

Pip range of a pair such as XAUUSD is the number of pips the pair have on a certain day. That means if you take the low and high price of XAUUSD on Monday and calculate the difference (High minus Low) you will get the number of pips for that day.

For example, if you have High = 200 and Low is = 50 then the difference between these two will be 200 - 50 = 150. That means the pip range for that day is 150 pips. 

Here is the average daily pip range of XAUUSD extracted from the market for the year 2020.

From January to December.

What is visible is that XAUUSD has a high average pip range which makes XAUUSD a very tradeable pair.

Each day you can expect that the pair will move more than 200 pips which is a high number. To make the comparison easy to understand here is the average pip range of EURUSD trading pair.

Now, you can see that EURUSD pair have around 80 pips on average per day. Compared to XAUUSD, 80 pips against more than 300 pips, we can say XAUUSD is more than 3 times more volatile than EURUSD.

How to Trade XAUUSD?

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Disclaimer: Any Advice or information is General Advice Only – It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By ...

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William K. 7 months ago Member's comment

Trading in gold and currency is clearly not for everybody. And this article explains a lot, so thanks a whole lot for the education.

Frano Grgic 7 months ago Author's comment

You are welcome.

This pair is really fast and very often peolle enter into trade expecting to gain quick and large profit where they end losing a lot.