Gold has become the dominant trading instrument at Australian broker Axi, reflecting a broader shift across the CFD industry as traders chase volatility in precious metals markets.
The broker confirmed XAU remains its most traded contract, with activity more than doubling in recent months as the metal extended gains to test a record $4,888 per ounce this week before pulling back to around $4,836. Gold climbed 65% last year and has added another 12% in the first three weeks of 2026.
"Interest in gold trading has more than doubled, firmly keeping XAU as the most traded instrument across the platform," Thiago Duarte, Market Analyst at Axi, told FinanceMagnates.com. He pointed to volatility rather than directional moves as the primary draw for traders, with wide intraday ranges attracting both short-term participants and those holding macro views.
Axi's experience mirrors a wider pattern among retail brokers. Metals CFDs accounted for more than 60% of global broker volumes in the first half of 2025, with roughly 80% of that activity concentrated in gold contracts.
Volumes Surge Across CFD Industry
Some platforms have seen gold trading climb to 90% of total volumes during peak sessions.
The rally has prompted operational adjustments across the sector. FXPrimus raised leverage on gold positions in October while OANDA flagged heightened volatility risks as gold rally continues.
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More recently, Scope Prime updated spreads after CME Group shifted precious metals futures margins from fixed amounts to percentage-based requirements.
Even crypto platforms have joined the rush. BingX reported gold futures contracts generating over $500 million in daily volume, accounting for half of the exchange 's $1 billion in traditional finance trading activity.
Tight Spreads Fuel Activity
Duarte said improved execution quality has played a key role in sustaining volumes. Tighter spreads across the industry have made gold CFDs more cost-efficient to trade, particularly during trending periods when traders become more sensitive to transaction costs. That efficiency has kept demand elevated even during pullbacks, suggesting gold has shifted from an occasional hedge to a core trading vehicle.
"Traders are no longer treating gold as a one-off hedge, but as a core trading instrument during periods of uncertainty," Duarte noted. He added that demand has remained consistent through corrections, with pullbacks bought quickly by investors still under-allocated to the metal.
The broker's focus on gold comes as Axi expands its product suite and institutional capabilities. The firm launched AxiPrime in July, a liquidity solution capable of processing 500,000 orders per second, and added 150 crypto contracts earlier this month alongside the appointment of former eToro risk executive Sotiris Karagiorgis.
Market Conditions Support Further Gains
Duarte outlined three factors supporting gold's momentum: real yields struggling to move decisively higher, stretched equity valuations increasing sensitivity to shocks, and relatively light short-term positioning that amplifies price moves when uncertainty rises.
He also pointed to a feedback loop where price breakouts draw momentum flows while dips attract defensive buyers.
"Gold is entering a phase where pullbacks are likely to be tactical rather than trend-ending," he said. "As long as volatility remains elevated, gold should stay well supported, with upside risks outweighing downside into the months ahead."
Analysts have projected targets as high as $5,000 to $6,000 for 2026 following a rally that accelerated after a criminal investigation into Federal Reserve Chair Jerome Powell sparked concerns about central bank independence in early January. The metal is now in price discovery mode, with technical levels pointing to a 100% Fibonacci extension at $5,000.
New institutional products continue to emerge alongside retail demand. GCEX launched gold futures CFDs last week, providing an alternative to rolling spot and non-expiring CFD structures for professional traders navigating the volatile environment.
