Gold is quoted in US dollars per troy ounce (XAU/USD) and is one of the most traded CFD markets in Europe. It behaves partly like a currency and partly like a commodity.
Ways to get gold exposure
| Route | What you hold | Leverage | Suits |
|---|---|---|---|
| CFD on XAU/USD | Contract with a broker | Up to 20:1 for EU retail | Short-term trading, going short |
| Exchange-traded commodities (ETCs) backed by physical gold, e.g. on Xetra | Securities backed by bullion | None | Long-term investors |
| Gold futures (e.g. COMEX) | Exchange-traded contracts | High | Experienced traders |
| Physical coins and bars | Metal | None | Long-term holding; VAT-exempt investment gold in the EU |
Gold is the one commodity ESMA grouped with non-major currency pairs and major indices at 20:1 maximum leverage for retail clients; silver and other commodities are limited to 10:1.
How a gold CFD works
Contract sizes vary: many brokers use 100 ounces per lot, so a $10 move in gold is $1,000 per lot. Others use 1 ounce. Always check the contract specification, then work out risk with the pip value calculator, which includes gold.
What drives the gold price
- Real interest rates: gold pays no interest, so higher real yields tend to weigh on it.
- The US dollar: a weaker dollar usually supports gold priced in dollars.
- Risk and uncertainty: geopolitical stress and financial turmoil increase demand.
- Central-bank buying, which has been a significant source of demand in recent years.
The currency effect for Europeans
Because gold is priced in dollars, a euro-based holder is also exposed to EUR/USD. When the dollar weakens, gold often rises in dollars but less in euro. Some ETCs offer euro-hedged versions. See currency risk for European investors.
Tax notes
Tax differs by country and by product: physical investment gold is VAT-exempt across the EU, and some countries tax physical gold held for a minimum period differently from securities or CFDs. Check your country guide and the tax authority it links to.
This guide is general information, not personal financial, tax or legal advice. Rules change; we review this page regularly and show the date of the last update above. Found an error? Tell us. See our editorial policy.
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