Gold Pip Value — Key Facts
Gold (XAU/USD) uses a different pip convention from forex: 1 pip = $0.01 (one cent). The contract size is 100 troy ounces per standard lot. This gives a fixed pip value of $1.00 per standard lot — independent of the current gold price. The ZAR equivalent changes with USD/ZAR throughout the day.
| Lot Size | Oz | Pip value (USD) | Pip value (ZAR @ 18.00) | Daily range (~2,000 pips) |
|---|---|---|---|---|
| 0.01 (micro) | 1 | $0.01 | R0.18 | ~R360 |
| 0.10 (mini) | 10 | $0.10 | R1.80 | ~R3,600 |
| 1.00 (standard) | 100 | $1.00 | R18.00 | ~R36,000 |
ZAR values are illustrative at USD/ZAR 18.00. Use the calculator above for live rates.
| Instrument class | Spot gold |
|---|---|
| One pip | 0.01 |
| Standard lot | 100 troy ounces |
| Value of one pip per lot | $1.00 |
| Typical spread | 30 pips — · FxPro verified |
| Notional value of one lot | — |
| Margin on one lot at 1:30 / 1:100 / 1:500 | — |
The last two rows move with the market and are filled in from the live rate; everything above them is fixed by the contract. Leverage available to you depends on your regulator and account type — check it in the platform before you size a position.
Why South African Traders Care About Gold
South Africa is one of the world's largest gold producers, and gold is culturally significant to the market. The ZAR has a strong negative correlation with gold prices: when gold rises, the rand typically strengthens. Trading XAU/USD gives SA traders direct exposure to this dynamic. Krugerrands are a household gold investment — most SA traders have an intuitive feel for gold price levels.
Gold Pip Convention — A Common Confusion
Some sources describe a gold pip as $0.10 or even $1.00. The industry-standard convention used by FxPro and most major brokers is 1 pip = $0.01 — the second decimal place of the price (e.g., 2350.15 → 2350.16 = 1 pip). A typical daily gold move of $20–$40 = 2,000–4,000 pips by this convention. Always verify with your specific broker's platform.
| Currency | Central bank | Policy rate | What moves it |
|---|---|---|---|
| XAU | No issuer | Priced in USD | real US yields · FOMC · fund flows |
| USD | Federal Reserve (Fed) | Federal funds target range | FOMC · CPI · jobs data |
Best Trading Hours for XAU/USD (SAST)
Gold is most liquid during London and New York overlap: 14:00–18:00 SAST. The New York COMEX session from 16:30–17:00 SAST is often the single most volatile window. Spreads widen significantly during Asian hours — avoid market orders on XAU/USD before 09:00 SAST.
Spreads are tightest when two sessions are open at once and widest when one desk has gone home and the next has not arrived. The shaded band is the overlap.
Pip values sourced from ECB reference data (Frankfurter API). Live BTC/ETH prices from CoinGecko. All values are indicative and for educational purposes — not live trading quotes. See full pip value table →
