Can I trade gold on a prop firm account?

Almost always yes, but with news restrictions, tighter effective sizing and often a weekend holding ban. Check whether the firm treats XAUUSD as a metal with its own leverage tier, because that changes your margin.

Why do prop traders fail on gold specifically?

Sizing carried over from FX. A 20-dollar gold stop at one lot risks 2,000 dollars, which can exceed a daily loss limit in a single trade on a mid-sized account.

Are automated gold strategies allowed by prop firms?

Policies vary — some permit expert advisors, others ban them or forbid high-frequency and latency strategies. Read the rule book before the challenge, because a breach found later voids payouts.

PROP FIRM GOLD AUTOMATION

Prop firm rules interact badly with gold: daily loss limits can be reached in two stops, trailing drawdowns are exposed to Sunday gaps, and news restrictions cover exactly the CPI, NFP and FOMC events that move XAUUSD.

Size backwards from the daily loss limit — a third of it as maximum single-trade risk, converted to lots via the stop in dollars per ounce times the 100-ounce contract.