COMMODITIES

Commodities are basic raw materials and natural resources that are traded on global markets, such as gold, silver, oil, natural gas, coffee, and wheat. They play a vital role in the world economy because they are the foundation of many industries and daily consumption. Traders and investors buy and sell commodities to take advantage of price fluctuations caused by supply and demand, geopolitical events, or economic conditions. Commodities are often seen as a way to diversify portfolios and hedge against inflation, especially precious metals like gold, which are considered safe-haven assets. However, commodity trading also carries risks due to market volatility and unpredictable global factors.