XAUUSD is the spot price of one troy ounce of gold in US dollars, usually traded as a margined CFD-style product. Gold futures, such as COMEX GC, are standardized exchange-traded contracts with an expiry date. Both follow the same metal. They differ in contract size, costs, expiry, clearing and, for US residents, in legal access. This guide compares them side by side. It also covers where gold ETFs such as GLD fit in.
TL;DR
- XAUUSD is a spot quote with no expiry. Futures are 100-ounce contracts (10 ounces for Micro) that expire and must be rolled or settled.
- Spot positions pay spreads and daily financing. Futures pay commissions and may carry roll costs.
- Futures are centrally cleared. Spot CFD-style trading depends on the broker's financial strength.
- US retail traders face strict rules on off-exchange financed gold products. Verify the product and the firm before funding anything.
- GLD is a third path: a fund share backed by bullion, with a 0.40% expense ratio and no leverage by default.
Table of Contents
- What XAUUSD actually is
- What gold futures are
- XAUUSD vs gold futures at a glance
- Contract size and position sizing
- Expiry, rolling and settlement
- Trading hours
- Costs: spread, swap, commission and roll
- Margin and leverage
- Counterparty risk and clearing
- Where GLD and gold ETFs fit
- Which one fits your situation
- US access: check the rules first
- Our perspective
- Automating gold trades with Sonic AI
- FAQ
- Sources
What XAUUSD actually is
XAU is the market code for one troy ounce of gold. USD is the quote currency. XAUUSD is therefore the spot rate for gold in US dollars per troy ounce. Retail platforms show it as a chart and let you go long or short with margin.
Two points matter here.
First, the retail product is a contract with your broker. You do not own gold. You hold a position that tracks the spot price, and the broker is your counterparty. Wholesale spot gold trades over the counter between banks and dealers, not on a single exchange.
Second, the product has no fixed end date. You can hold it as long as you pay the financing and keep enough margin. That is the main convenience of spot trading. It is also where holding costs come from.
As a price snapshot, one aggregator showed $4,061.70 per ounce on October 27, 2026. Use that as an example of scale, not a live quote.
What gold futures are
A gold futures contract is a standardized, exchange-traded agreement to deliver a fixed quantity of gold on a fixed date. The benchmark is COMEX Gold, symbol GC. CME's fact card lists the main terms: 100 troy ounces per contract, prices in US dollars and cents per ounce, a $0.10 minimum price move, and termination on the third-last business day of the delivery month. Deliverable gold must be at least 995 fine.
CME also offers a smaller version. Micro Gold futures are 10 ounces, against 100 for the standard contract. Most traders never take delivery. They close the position or roll it into a later month.
A worked example shows the size. The CME daily bulletin for October 27, 2026 shows the December 2026 GC contract settling at $4,074.60 per ounce. One contract at that price controls about $407,460 of gold (100 x $4,074.60). A Micro contract controls about $40,746. These are our own calculations from the published settlement.
Note the two prices in this article: $4,061.70 for spot and $4,074.60 for December futures. They come from different sources and different times, so they are not a clean comparison. The point is that futures prices for later months can sit above spot. That gap matters when you roll.
XAUUSD vs gold futures at a glance
| Feature | XAUUSD (spot, CFD-style) | Gold futures (COMEX GC) |
|---|---|---|
| Contract size | Set by the broker; often fractions of a lot | 100 oz (GC), 10 oz (Micro) |
| Expiry | None, perpetual | Fixed monthly dates |
| Main costs | Spread and daily swap or financing | Commission, exchange fees, possible roll cost |
| Margin | Set by the broker | Set by the exchange and clearing rules |
| Counterparty | The broker | Central clearing |
| Venue | Over the counter | CME Globex |
| Settlement | Cash, tied to the broker | Physical delivery by contract, usually closed or rolled before |
The sections below explain each row.
Contract size and position sizing
Futures have fixed sizes. You trade whole contracts, so the smallest position is one Micro at 10 ounces. Spot products usually allow smaller steps, which helps small accounts control risk per trade.
Sizing is where most beginners go wrong. Before any trade, work out how many dollars you lose per $1 move in gold. On a 100-ounce contract it is $100. On a Micro it is $10. A futures position size calculator helps you turn that into a contract count for a given risk limit.
For spot lots, see our guide to XAUUSD lot size examples. To understand price steps, read pip vs point on XAUUSD.
Expiry, rolling and settlement
Futures expire. A trader who wants to stay in gold past that date must either settle or roll the position into a later contract month. Rolling means closing the near month and opening the next one. If deferred contracts cost more, the roll adds cost. CME notes that rolling may create brokerage costs and affect performance when deferred contracts are more expensive.
Spot CFD-style positions are perpetual. There is nothing to roll. The cost shows up instead as a daily financing charge.
This makes the choice partly about holding time. A position held for hours or days fits spot trading. A position held for months has to weigh daily financing against roll costs.
Trading hours
Both markets run nearly around the clock on weekdays. CME gold futures are available electronically on Globex Sunday through Friday, with a daily break. Spot brokers set their own schedules, which are similar but not identical. Our XAUUSD trading hours schedule for US traders lays out the sessions in US time.
Liquidity is not equal across the day. For intraday traders, the overlap of London and New York sessions tends to be the busiest. Our analysis of XAUUSD volatility by time of day covers it in more detail.
Costs: spread, swap, commission and roll
Costs differ in structure, not just size.
Spot (CFD-style). You pay the bid-ask spread on entry and exit. You also pay daily overnight swap or financing on positions held past the rollover time. That is why such products suit short-term speculation better than long-term holding.
Futures. There are no daily overnight interest fees, but roll costs may apply. You also pay commissions and exchange fees. CME says gold futures carry no management or storage fees.
Spreads on spot can be wider than one futures tick, especially in quiet hours or during news. Our XAU/USD spread playbook shows how spreads change by session. Slippage is a separate cost. See the slippage audit for gold traders.
The SEC's investor education site makes a general point worth keeping: even small differences in investment costs can mean large differences in earnings over time. Add up all costs for your holding period, not just the headline spread or commission.
Margin and leverage
Both products are leveraged. The rules differ.
Futures margin is exchange-enforced and variable. CME's own example assumes a 5% requirement. Spot margin is set by your broker and, in some countries, by regulation. In the UK, for example, FCA rules cap retail CFD leverage between 30:1 and 2:1 depending on the underlying's volatility. Rules in other countries differ.
The risk is the same in both. The CFTC gives a gold example: a 100-ounce contract worth $420,700 required $20,400 in margin. A $1 fall per ounce meant a $100 loss. A fall of roughly 5% in the spot price could erase the initial $20,400.
Leverage can also push losses past your deposit. Futures leverage magnifies gains and losses and can lead to margin calls or forced liquidation. Whether a loss can exceed your account depends on the product and the broker's terms. Read them before you trade.
For the mechanics, see our guides to XAUUSD margin requirements and XAUUSD leverage risks.
Counterparty risk and clearing
Futures are centrally cleared. CME says central clearing mitigates third-party credit risk. Your broker still matters, but the exchange stands behind the contract.
Spot CFD-style products are over the counter. Their central structural difference is that they depend on the broker's financial stability. Check how the broker segregates client funds and who regulates it.
Where GLD and gold ETFs fit
Many readers also ask about GLD. It is a different tool.
SPDR Gold Shares (GLD) is a US-listed trust meant to reflect the price of gold bullion less expenses. The sponsor's page lists NYSE Arca listing and a 0.40% expense ratio. Each share represents one tenth of an ounce of gold held in custodians' depositories.
How it compares:
- Ownership. You hold fund shares, backed by bullion. Neither XAUUSD nor futures gives you that.
- Access. ETF shares can generally be bought and sold like stocks in a standard brokerage account. Futures are derivatives and more complex.
- Costs. The expense ratio is deducted inside the fund. There is no expiry, no roll and no swap.
- Leverage. None by default. This limits both gains and losses.
- Tracking. Fees and operating costs cause the fund to drift slowly from spot over long periods.
- Holdings. Not every gold ETF holds only bullion. State Street says investors must inspect holdings.
The SEC says an ETF prospectus covers fees, objectives, strategies, risks, performance and pricing. Read it before buying any fund.
Which one fits your situation
Match the product to the purpose.
- Long-term exposure to gold with no leverage: an ETF is the simplest fit.
- Hedging, tactical or leveraged positions with exchange clearing: futures. State Street describes them as more suitable for sophisticated investors.
- Short-term speculation in small sizes: spot XAUUSD, where the broker and jurisdiction allow it.
Check four things first: how much capital you can afford to lose, your experience with margin, the total cost over your holding period, and what is legal where you live.
US access: check the rules first
This point is easy to miss. The CFTC warns that US retail off-exchange financed precious metals transactions are generally prohibited under Dodd-Frank. There is an exception for transactions that result in physical delivery within 28 days. A US trader should confirm that an XAUUSD-style product is lawful and offered by a properly registered firm. If it is not, regulated futures or ETFs are the usual route.
Other countries have different rules. A 2026 practice guide on derivatives notes that jurisdictions differ on who may trade, margin and clearing. Always check your own regulator.
Our perspective
We run a gold-only strategy, so we see this question daily. Our view is simple. The instrument matters less than the way you trade it. Most losses in gold come from oversized positions and leverage, not from picking spot over futures.
We focus on XAUUSD because it allows small position sizes and continuous trading. Sonic AI states an 80% win rate, drawdown below 1% and 18 consecutive winning months, with results published on MyFXBook. These are the strategy's own reported figures. Past results do not guarantee future results, and any leveraged trading can lose money.
For a reader who does not want to size and time trades manually, automation removes one source of error. It does not remove market risk. Check the live record yourself on the Sonic AI MyFXBook results page before you decide.
— Paulo
Automating gold trades with Sonic AI
Sonic AI is an auto-trading strategy for gold (XAUUSD) only. It runs through COPYX, which copies trades to your account automatically. You do not need to place orders yourself. Account options include 12X and 24X amplified accounts, described on the amplified account page. Fees are performance-based. See the performance fee details. No price is published for the service itself.
To see how the strategy works and how setup goes, start at the Sonic AI home page. Availability depends on your country and the connected broker, so confirm that it is permitted where you live. Amplified accounts raise both potential gains and potential losses.
FAQ
Is XAUUSD the same as gold futures?
No. XAUUSD is the spot price of gold in dollars, traded as a margined product with no expiry. Gold futures are standardized contracts on an exchange with fixed expiry dates. The two prices move together but are rarely identical, because futures for later months can trade above spot.
Is GLD better than XAUUSD?
It depends on your goal. GLD is a fund share backed by bullion, with a 0.40% expense ratio and no leverage, so it suits long-term holders. XAUUSD suits short-term trading but carries spreads, swaps and leverage risk. Read the GLD prospectus before buying.
Which is cheaper, spot gold or futures?
Neither is cheaper in every case. Spot costs are the spread plus daily financing. Futures costs are commissions, exchange fees and possible roll costs. Short holds often favor whichever has the tighter spread. Long holds need a calculation of financing against roll costs.
Can US traders trade XAUUSD?
US retail rules are strict. The CFTC says off-exchange financed retail precious metals deals are generally prohibited, with a narrow physical-delivery exception. Check that the product is lawful and the firm is registered before you deposit funds. Futures and ETFs are available through regulated US brokers.
Sources
- XAU/USD - Gold, FXCM
- XAUS: XAU/USD Gold Spot Price
- Gold Spot Price vs Futures Price, XAUTicker
- Gold Futures and Options fact card, CME Group
- Gold Futures vs. Gold ETFs, CME Group
- CME daily bulletin, Metal Futures Products
- Gold Futures, CME Group
- Gold Overview, CME Group
- Spot Gold vs Gold Futures, MyTrade Academy
- Gold CFD, XTB
- Investor Bulletin: 10 Investment Tips, Investor.gov
- PS19/18, FCA
- Gold Isn't Always a Safe Investment, CFTC
- Gold ETFs vs Futures, Volity
- SPDR Gold Shares (GLD)
- How to buy gold, Fidelity
- Ways to Invest in Gold, State Street
- Information Available to Investment Company Shareholders, Investor.gov
- Derivatives 2026, Chambers