Reading left to right
In any pair written A/B, A is the base and B is the quote. The number tells you how many units of B buy one unit of A. In , gold is the base and U.S. dollars are the quote.
That is why XAU/USD can rise for two reasons: gold becomes more desirable, or the dollar loses value. Comparing XAU/EUR or XAU/CAD helps separate the two.
Reading a quote
XAU/USD=2,425.50
Base asset
1 troy ounce of gold
Quote currency
priced in U.S. dollars
Price
dollars per ounce, right now
Educational illustration · not a live price or trading recommendation
Key takeaways
- Base = what you're pricing; quote = what you price it in.
- Currency moves affect the gold quote.
Knowledge check
In XAU/CAD, the quote currency is…
Key terms · hover or tap for a definition