XAU/USD is the trading symbol that represents the price of gold (XAU) quoted in U.S. dollars (USD), showing how much one ounce of gold is worth in dollars. It is one of the most popular instruments in the forex and commodities markets, often seen as a safe-haven asset during times of economic uncertainty, inflation, or currency fluctuations. Traders use XAU/USD to hedge against risk or to profit from gold’s price movements, which are influenced by factors like global economic data, interest rates, geopolitical events, and the strength of the U.S. dollar. Because of its volatility and strong reaction to market sentiment, XAU/USD is widely traded by both short-term traders and long-term investors.