The XAUUSD refers to the price of 1 troy ounce of gold in terms of the US dollar. Over the years, gold has remained an attractive commodity due its store value, beautiful appearance and malleability. Many investors consider gold as a safe haven instrument that buffers them against inflation in times of recession and financial crisis. This is due to its ability to increase its value in times of volatility and economic uncertainty. Trading gold in the foreign exchange markets is a great way for investors world over to diversify their portfolio through the use of futures contracts and derivatives. Traders seeking to trade spot gold need to gain a good understanding of the some of the factors that have an impact on the XAUUSD pair, including the supply and demand, US dollar risk, current events and market speculations. The most common benchmark for pricing the majority of gold products and derivatives has been the London Gold Fixing.