This is one of the most common questions among Indian gold traders because XAUUSD is widely available on global trading platforms.
What is XAUUSD?
XAUUSD represents the price of gold quoted in US dollars.
XAU is the international code commonly used for gold.
USD refers to the US dollar.
The quote therefore tells you approximately how many US dollars one troy ounce of gold is worth.
International trading platforms commonly offer XAUUSD through spot-style contracts, leveraged derivatives or Contracts for Difference (CFDs). These products are structurally different from gold futures traded on India’s MCX.
What do Indian forex rules say?
Under FEMA, Indian residents may undertake forex transactions only with authorised persons and for permitted purposes.
RBI further states that permitted forex transactions executed electronically should take place only on:
RBI-authorised Electronic Trading Platforms (ETPs), or
recognised stock exchanges such as NSE, BSE and MSE, subject to RBI rules.
RBI warns that residents undertaking forex transactions through unauthorised ETPs may be liable for action under FEMA.
Indian exchanges currently provide exchange-traded currency derivatives for currency pairs such as:
USD/INREUR/INRGBP/INRJPY/INREUR/USDGBP/USDUSD/JPY
