Commodities Trading: Gold, Crude Oil, and Silver Essentials
Global Markets
10 min read
Published: • Last reviewed:
By Pinbar AI Research Team
Commodities Trading: Gold, Crude Oil, and Silver Essentials
Understand the fundamentals of commodity trading — what drives gold, crude oil, and silver prices, and how to trade them effectively.
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10 min read
Introduction to Commodities Trading
Commodities are raw materials or primary agricultural products that can be bought and sold. For traders, commodities offer diversification, inflation hedging, and unique trading opportunities.
Gold
Why Traders Watch Gold
Safe-haven asset: Rises during uncertainty and crises
Inflation hedge: Historically maintains value against currency debasement
Central bank demand: Central banks globally hold gold reserves
Inverse USD correlation: Gold typically rises when USD weakens
What Drives Gold Prices
US Dollar strength/weakness
Real interest rates (nominal rate minus inflation)