Commodity Market

The commodity market is a sector of the capital markets where raw materials or primary goods, such as oil, gold, wheat, and coffee, are traded. These commodities can be bought and sold as physical goods or through financial contracts, like futures and options. Investors and traders participate to hedge against price fluctuations, speculate for profit, or meet the demand for materials. Prices are influenced by supply and demand dynamics, geopolitical events, weather conditions, and economic factors. Overall, the commodity market plays a crucial role in the global economy by facilitating trade and investment in essential goods.