Commodities often have low correlation with traditional assets such as stocks. Traders add commodities to their portfolio to spread their risk and diversify their portfolio
Hadging Against Inflation
Metals in particular, such as gold are often seen as safe havens. when a value of a currency decreases, it is speculated that commodities prices tend to rise, preserving the purchasing power of the asset
Geopolitical And Economic Impact
Commodity prices are often influenced by geopolitical events, weather conditions and economic policies. Many traders try to capitalize on such information for their trading decisions
Global Demand
Commodities such as oil, Natural gas and agricultural products are essential for global economy. Their prices are driven by supply and demand, a key metric when deciding the direction of your trade
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