<p>Gold, symbolized by XAU, is a precious metal widely traded in the global markets, with XAU/USD being one of the major pairs. It is often considered a safe haven, a status that has been earned over centuries due to its unique properties and historical significance.</p>

<h2>How It Works</h2>
<p>Gold is traded in troy ounces, with one troy ounce equivalent to 31.1035 grams. The XAU/USD pair represents the price of one troy ounce of gold in U.S. Dollars. Traders can buy or sell gold through CFDs (Contracts for Difference) or futures contracts, allowing them to speculate on the price movements without physically owning the metal.</p>
<p>Gold's value is influenced by various factors, including geopolitical risks, inflation rates, interest rates, and the strength of the U.S. Dollar. When the dollar weakens, gold tends to appreciate, and vice versa, due to their inverse relationship. Additionally, gold is often seen as a hedge against inflation, as it maintains its purchasing power during periods of high inflation.</p>

<h2>Why It Matters</h2>
<p><strong>Diversification:</strong> Gold is a tangible asset that can diversify a portfolio, reducing overall risk. It tends to move independently of other asset classes, providing a hedge during market downturns.</p>
<p><strong>Safe Haven:</strong> In times of economic uncertainty or geopolitical tension, investors often turn to gold as a safe haven. Its stable value and ability to preserve wealth make it an attractive option during market volatility.</p>
<p><strong>Industrial Use:</strong> Apart from its role in jewelry and coinage, gold also has significant industrial applications, particularly in electronics and dentistry. These uses contribute to its overall demand and value.</p>