Latest Commodities News & Reports

Silver

Silver Prices Edge Higher in Narrow Trade

oil storage tanks

Crude Oil Prices Sustain Gains, Long Positions Scaled Back

A fragile dollar has continued to provide net support to crude oil prices with markets also more confident surrounding underlying fundamentals after the sustained...
oil rig

Crude Oil Prices Weekly Forecast August 21-25

WTI crude oil prices (USOIL) were under pressure for most of the week but a single day rally on Friday wiped most of the...
Gold

Gold Prices Weekly Forecast: Risk Trends Continue To Dominate, Battle For Key Resistance

Developments surrounding risk appetite are liable to dominate much of the week ahead with markets also monitoring comments from key global central bankers. Overall,...

Uranium Prices: Environmentalists, Scientists Push for More Nuclear Power

On Friday, French president Emmanuel Macron received a letter from 45 activists, writers and academics spearheaded by eminent climate scientist James Hansen and Francois-Marie...
cargo ship baltic dry index

The Baltic Dry Index Caps Winning Week Up 13 Points

The Baltic Dry Index added 13 points to reach 1260 on Friday, capping another winning week with a gain each session, but Friday’s paper...

Coffee Prices: Fund Exodus Sends Arabica to Five-Week Low

Arabica coffee prices fell again on Friday, and this time the descent took futures to a five-week low. Arabica started its downtrend earlier in...
gold prices bullion

Weaker Risk Appetite Boosts Gold Prices, Attack On Key Resistance

The combination of weaker risk appetite and a generally fragile US dollar has triggered fresh demand for gold with an attack on key resistance...
silver

Silver Prices Overcome Initial Volatility; On Track for Weekly Gain

Silver prices ran into resistance Friday but still managed to push higher, as haven demand and risk-off sentiment fueled precious metals.Silver futures for September...
oil tanker

Crude Oil Prices Rally From Key Support, Dollar Retreat Underpins Sentiment

The ability to hold key support for Brent and a weaker dollar helped nudge oil prices higher amid choppy trading conditions.Oil prices continued to...
crude oil
gold
silver
copper
natural gas
steel

Commodities are raw materials intended for use or consumption. There are three main commodity classifications: Agriculture commodities (often referred to as soft commodities), energy commodities, and metal commodities (referred to as hard commodities).

The most commonly traded commodities are crude oil, gold, silver, and copper.

How Are Commodities Traded?

Commodity markets can include physical delivery, referred to as a spot contract. Most trades, however, are carried out through derivative trading using futures, forwards, CFD’s, and options.

  • Futures contracts are carried out through regulated commodity exchanges. There are a number of international commodity exchanges; the world’s largest futures exchange is the Chicago Mercantile Exchange (CME). Other notable exchanges include the New York Mercantile Exchange, and the London Metal Exchange.

Futures contracts have been the most popular method of trading commodities. The introduction of CFD’s in the late 1990s popularized commodity trading as the usage of leverage was permitted.

  • CFD’s are now offered by most brokers, including brokers that focus primarily on currency trading. While the range of products offered on CFD trading varies from one broker to another, at a minimum, most will offer to trade in crude oil, gold, and silver.
  • Forward contracts introduce the element of time into the equation. The method has been commonly used in agricultural trading, to avoid fluctuations in price ahead of harvesting a crop. The forward contract would allow farmers to set the price on their crops in advance, eliminating risk as a result of price fluctuations. Trading on forward contracts has expanded outside of its original intended use, and contracts are now traded for speculative purposes in a broad range of commodities.

What are Commodities Correlated With?

As the US dollar is the largest traded currency in the world, there is a loose inverse correlation between the value of the dollar and commodity assets.

While the US dollar carries a correlation with the broader commodity market, individual currencies tend to have correlations with individual commodities. In the currency markets, resource-driven economies are referred to as commodity currencies. New Zealand, for example, relies heavily on their dairy trade exports, and therefore fluctuations in dairy prices stand to affect their economy, and as a result, stand to impact their currency. In Australia, copper exports have created a link between their currency and the commodity. Canada produces oil, and their currency carries a strong correlation with oil prices.

Metals have been defined as safe haven assets. During periods of market uncertainty, or what is commonly known as risk aversion, gold prices tend to go up. Risk sentiment shifts in the global financial markets are not the only influence on gold; the precious metal is also bought as a hedge during extended times of low inflation.

Factors That Affect Commodity Markets

In its most general form, supply and demand drive commodity markets. Individual commodity classifications and individual commodities are driven by different influences. Oil, for example, is sensitive to decisions made by the Organization of the Petroleum Exporting Countries (OPEC). Gold prices are influenced by risk sentiment and global inflation levels. The price of gold then influences other commodities under the metals umbrella.

Agricultural commodities are affected by seasonality patterns that can be related to weather conditions, which consequently affect supply. Global events and natural disasters can impact the commodity market, as an example, a hurricane in an agricultural-driven economy would simultaneously increase demand for gold while suppressing prices in agriculture commodities.

1,990FansLike
9,753FollowersFollow
1,496FollowersFollow

Commodity Prices

CommodityBidAsk
Live Commodity Prices by FXCM

Upcoming Economic Events

Other News

usdcad canadian flag

June Canadian Wholesale Sales Decline 0.5%, Inventories Increase Again

Canadian wholesale sales fell 0.5% for June following 8 successive monthly gains and a revised 1.0% increase for May. The release was below consensus...
bitcoin BTC/USD

Bitcoin Prices Stabilize After $200 Drop

Bitcoin prices stabilized on Monday after a volatile weekend, as the newly minted Bitcoin Cash came crashing back down from record levels.Bitcoin (BTC/USD) rose...
Euro Dollar EUR/USD

EUR/USD Confined To Tight Ranges, Very Limited Losses In Prospect

The Euro will be vulnerable to some further position adjustment into key speeches later this week, although underlying selling pressure is likely to be...
Japan Currency JPY

USD/JPY Unable To Sustain Recovery, Lower US yields Erode Dollar Support

There is scope for limited net USD/JPY gains in the short term, although the Japanese currency will still gain net protection from a net...
UK Currency -US Dollar GBP/USD

GBP/USD Holds Tight Ranges, UK Reservations Curb Buying Support

A lack of liquidity and choppy trading is likely to remain the most important market element in the short term with no significant economic...