Gold Pip Value — Key Facts
Gold (XAU/USD) follows a different pip convention compared to standard forex pairs: 1 pip = $0.01 (one US cent). The contract size is 100 troy ounces per standard lot. This results in a fixed pip value of $1.00 per standard lot — entirely independent of the prevailing gold price. The INR equivalent shifts throughout the trading day in line with the USD/INR exchange rate.
| Lot Size | Oz | Pip value (USD) | Pip value (INR @ 83.50) | Daily range (~2,000 pips) |
|---|---|---|---|---|
| 0.01 (micro) | 1 | $0.01 | ₹0.84 | ~₹1,670 |
| 0.10 (mini) | 10 | $0.10 | ₹8.35 | ~₹16,700 |
| 1.00 (standard) | 100 | $1.00 | ₹83.50 | ~₹1,67,000 |
INR values are illustrative at USD/INR 83.50. 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 Indian Traders Pay Close Attention to Gold
India is the world's second-largest consumer of gold, and the metal holds deep cultural and financial significance across the country — from weddings to festive investment. Gold price movements directly influence household wealth and sentiment in the Indian market. Many traders follow XAU/USD not only as a speculative instrument but as a key macro indicator. When global uncertainty rises, gold demand from Indian buyers typically increases, reinforcing its importance to the local trading community.
Gold Pip Convention — A Common Source of Confusion
You may come across different definitions of a gold pip — some platforms quote it as $0.10 or even $1.00. The widely accepted industry standard used by FxPro and most major brokers is 1 pip = $0.01 — representing the second decimal place in the price (e.g., 2350.15 → 2350.16 equals 1 pip). A typical intraday gold move of $20–$40 translates to 2,000–4,000 pips under this convention. Always confirm the pip definition on your specific broker's trading platform before sizing positions.
| 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 (IST)
Gold liquidity peaks during the London and New York overlap: 18:30–23:00 IST. The New York COMEX session opening around 20:00 IST is often the most volatile window of the day, with sharp directional moves and tight spreads. During early morning Indian hours before 13:00 IST, gold spreads widen considerably — avoid placing market orders during these low-liquidity periods to reduce slippage risk.
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 →