Explore the dynamic world of the commodities market, where essential raw materials like crude oil, gold, agricultural products, and metals are traded globally....
Commodities are basic goods used in commerce that are interchangeable with other goods of the same type. They are raw materials, such as crude oil, gold, wheat, and natural gas, essential for industrial and consumer products.
Commodities are primarily traded on exchanges via futures contracts, which are agreements to buy or sell a commodity at a predetermined price on a future date. They can also be traded on the spot market for immediate delivery.
Prices are influenced by supply and demand dynamics, geopolitical events, weather patterns, economic growth forecasts, currency fluctuations, and technological advancements affecting production or consumption.
Investors often use commodities to diversify portfolios, hedge against inflation, and potentially profit from price movements. They can offer a safeguard during periods of economic uncertainty and market volatility.