Gold trading quiz · TradeBridge IB

1.What does an XAU/USD quote of 2,000.00 tell you?

One gram of gold costs 2,000 US dollarsOne standard lot of gold costs 2,000 US dollars2,000 troy ounces of gold cost one US dollarOne troy ounce of gold costs 2,000 US dollars

2.On a 100 oz contract, how much is a 1.00 USD move in the gold price worth per lot?

1 USD100 USD10 USD1,000 USD

3.As an example, a bond yields 4.0% and expected inflation is 2.5%. What is the real yield?

6.5%4.0%1.5%2.5%

4.Why have lower real interest rates tended to support the price of gold?

Because gold pays no interest, so the opportunity cost of holding it fallsBecause central banks are required to buy gold when rates fallBecause lower rates always strengthen the US dollarBecause gold pays a higher dividend when rates fall

5.You have a 20,000 USD account, risk 1% and use a 10.00 USD stop on a 100 oz gold contract. What position size matches your risk?

0.20 lots2.00 lots0.02 lots1.00 lot

6.Which statement about gold's safe-haven role matches the course?

Gold always rises when stock markets fallGold never moves during geopolitical eventsGold can fall early in a crisis as investors sell assets to raise cashGold and the US dollar can never rise at the same time

7.Which part of the trading day is usually the most liquid for gold?

The early Asian sessionThe overlap of the London and New York sessionsThe daily platform breakSunday evening when the market reopens

8.You hold 20 oz of gold with a 10.00 USD stop, but the market reopens 25.00 USD below Friday's close. Roughly what is the loss?

200 USD, because the stop limits the loss250 USD50 USD500 USD