Gold Position Risk Management: Handling the Volatility of XAUUSD

Gold can move $30–$80 in a single session on major news. Here's how to manage risk on XAUUSD without getting destroyed on the volatile days: **1. Scale position to the daily ATR.** Gold's average true range (ATR) is currently ~$25/day. Your stop loss should be at minimum 1× ATR from entry. **2. Never trade gold during NFP, FOMC, or CPI with full size.** These events can move gold $40–$80 in seconds. If you must trade through the data, cut to 25–50% of normal size. **3. Understand the spread.** Gold typically has a $0.30–$0.50 spread, but it widens to $1.00–$3.00 during major events. **4. Use session timing wisely.** Gold is most liquid during London and NY overlap (13:00–17:00 GMT). Asian session gold can be choppy with poor fills. What's your position sizing formula for gold trades?