Forex markets see gold being represented as the XAU/USD pair. It represents the value of one ounce of gold against the US dollar. While XAU denotes gold, USD is understandably the US dollar. Gold is a commodity, and the dollar is the primary currency in this pair. In forex trading, gold often safeguards investors against currency fluctuations and inflation. It thus helps traders diversify their trading portfolios to meet varying times. Gold works even more amid uncertain political and economic scenarios. As the demand for gold rises, traders investing in XAU/USD often earn higher profits.