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3. XAU/USD-The Gold Standard

Now we move to the most special asset in Forex-Gold
(XAU/USD).

What is XAU/USD?

XAU is the international symbol for gold, and USD represents the
U.S. Dollar. So, XAU/USD shows how much one ounce of gold is

worth in U.S. Dollars

Example:

If XAU/USD = 2400, it means 1 ounce of gold costs 2400 U.S.
Dollars.

Gold is not a normal currency-it is a store of value, a hedge
against inflation, and a safe haven asset.When global uncertainty

rises (wars, economic crashes, inflation), investors run toward

gold to protect their wealth.When markets are calm and strong,
they move away from gold and invest in stocks or other

assets.That’s why XAU/USD usually moves opposite to the U.S.

Dollar and stock market.