Commodities
Commodities are physical goods that are traded on financial markets. They are raw or primary products that are extracted or produced, such as agricultural products, minerals, and energy. Commodities are traded on commodity exchanges, such as the Chicago Mercantile Exchange (CME), and are bought and sold in standardized contracts.
Commodities can be classified into four main categories: agricultural, energy, metals, and minerals. Agricultural commodities include products such as grains (wheat, corn, rice), livestock (cattle, pigs, poultry), and soft commodities (coffee, cocoa, sugar). Energy commodities include oil, natural gas, and coal. Metals commodities include gold, silver, platinum, and copper. Minerals commodities include iron ore and other raw materials used in construction and manufacturing.
Commodities are traded by producers, consumers, and speculators who buy and sell them in the hopes of making a profit from changes in their prices. Prices of commodities are influenced by a variety of factors, including supply and demand, weather conditions, and geopolitical events. Commodities can be volatile and are often used as a hedge against inflation and economic uncertainty. Forex trading has several commodities for trading such as Gold (XAUUSD), Silver (XAGUSD), Oil, and more.
