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Gold has been known as a good hedge against inflation and hence, many investors flock towards the gold trading market.
When is the peak activity for gold trading typically observed?
During European trading hours
During Asian trading hours
During New York trading hours
Throughout the 24-hour trading period
How might off-peak trading hours affect gold traders using a scalping strategy?
Provide fewer opportunities for profit
Increase the likelihood of profit due to reduced volatility
Decrease the potential for profit due to increased volatility
Have no impact on trading outcomes
What role does gold play in the commercial and industrial sectors?
It serves as a speculative investment only
It has no practical applications outside of jewelry
It is used for making jewelry and electronic products
It is primarily used for central bank reserves
Why central banks purchase gold assets?
To increase inflation rates
To decrease currency instability risks
To reduce gold prices
To discourage gold trading
What advantage do long-term charts provide to beginner gold traders?
They offer insights into short-term price movements
They help identify major price levels and patterns
They indicate daily trading volumes
They predict future geopolitical events
How does gold's practical applications affect its spot prices?
It decreases gold demand and prices
It increases gold demand and prices
It has no effect on gold demand and prices
It leads to fluctuations in gold supply
What factor might cause gold prices to decrease during times of inflation?
Geopolitical tensions
Central bank interest rate hikes
Increased demand for gold
Decreased production and mining