WHAT IS A GOLD PIP?

A gold pip is normally a 0.01 move in the XAUUSD price, which is worth approximately one US dollar on a standard lot of one hundred troy ounces. A move from 2410.00 to 2411.00 is therefore one hundred pips and roughly one hundred dollars of profit or loss on a full lot position.

Gold pip terminology is inconsistent across brokers. Symbols quoted to two decimal places make the smallest tradeable increment 0.01, while three decimal quotes make the smallest increment 0.001 and a pip becomes ten platform points. Because of this, a stop expressed in dollars of gold price is unambiguous where a stop expressed in pips is not.

The practical risk for traders arriving from foreign exchange is scale. A hundred pip day is meaningful on EURUSD, while a normal London session on gold can travel fifteen to thirty dollars, or fifteen hundred to three thousand pips on the common convention, which is why gold positions must be sized from the dollar distance to the invalidation level rather than from an FX habit.