Commodity Market


Dollar elevated by Trump tax hopes while Gold dips
Dollar elevated by Trump tax hopes while Gold dips

Global equity bulls were missing in action on Thursday, after weaker corporate earnings, soft economic data from China and heightened political drama in Spain encouraged investors to...

Gold loses shine on USD strength
Gold loses shine on USD strength

The US economy has been a little lacklustre as of late, yet the stock market continues to climb higher and employment figures continue to improve. If you asked FOMC member Harker tho...

Euro pressured by political jitters
Euro pressured by political jitters

The Euro found itself vulnerable to losses on Monday morning, thanks to heightened political drama in Spain. Jitters over the Catalan developments were felt across the board, after P...

Investors exhale as Catalan fears ease
Investors exhale as Catalan fears ease

A strong sense of relief was felt across financial markets on Tuesday evening, after Catalan leaders signed a “symbolic” declaration of independence but immediately suspe...

Gold supported by geopolitics, Lira plummets
Gold supported by geopolitics, Lira plummets

Gold shone brightly on Monday as a renewed focus on geopolitical risks stoked demand for safe-haven assets. Fresh concerns over North Korea’s nuclear program has accelerated th...

Gold struggles to shine as Dollar firms
Gold struggles to shine as Dollar firms

Gold struggled to hold onto its shine on Tuesday, as the risk-on mood encouraged investors to seek riskier assets such as equities. The yellow metal dipped to a seven week low to bel...

Sterling stumbles into Q4, Gold dims
Sterling stumbles into Q4, Gold dims

Sterling got off to a rough start during Monday’s trading session, after weaker than expected data from Britain’s manufacturing sector, suggested that the economy could b...

Greenback higher ahead of Trump’s tax speech
Greenback higher ahead of Trump’s tax speech

The Dollar made its presence known across the currency markets on Tuesday, after hawkish comments from Federal Reserve Chairwoman Janet Yellen, bolstered expectations for another US ...

Dollar flexes ahead of Yellen’s speech
Dollar flexes ahead of Yellen’s speech

King Dollar flexed its muscles against a basket of major currencies during Tuesday’s trading session, as investors positioned ahead of Janet Yellen’s anticipated speech l...

Oil swings back into focus
Oil swings back into focus

OPEC members have gathered in Vienna to discuss the current state of monitoring in the oil market and with non OPEC members as well. The main basis of this talk will be to go over th...

FOMC brings out the USD bulls
FOMC brings out the USD bulls

FOMC led the market today as all eyes turned to Janet Yellen and the current thinking behind the FED for monetary policy. Markets were not left with any disappointment as expectation...

Sterling steals the show while Dollar continues to sulk
Sterling steals the show while Dollar continues to sulk

Financial markets offered a fairly muted response towards North Korea’s latest ballistic missile launch over Japan during Friday’s trading session, with stocks in Asia co...

Global tensions set to boost metals
Global tensions set to boost metals

North Korea is on the move again when it comes to upsetting the western world, as reports are now surfacing that they will test launch another ICBM and potentially point it towards p...

Gold retreats as risk appetite returns
Gold retreats as risk appetite returns

Gold gapped down on Monday but, with Dollar still vulnerable to further losses, the yellow metal will likely remain supported long-term. Gold lost some of its sparkle on Monday, havi...

Euro, Dollar and Gold in focus
Euro, Dollar and Gold in focus

Mario Draghi’s cautious tone during Thursday’s ECB press conference was unable to tame the rampant Euro bulls, sending the EURUSD to levels not seen since January 2015, t...

Financial markets gripped by geopolitical turmoil
Financial markets gripped by geopolitical turmoil

Financial markets were firmly gripped by geopolitical risks on Tuesday, as brewing tensions between the United States and North Korea weighed heavily on global sentiment.Risk aversio...

Metals lead charge in flight to safety
Metals lead charge in flight to safety

Global markets have had a quiet day in most trading pairs, bar anything that contains an element of safety after the recent global escalations with North Korea. The small country on ...

Gold finally breaks above $1,300. Will the Euro follow?
Gold finally breaks above $1,300. Will the Euro follow?

Equities across the globe traded mostly in the red on Tuesday, after North Korea launched a ballistic missile over Japan. Although investors have become sensitized to such actions by...

Gold surges on U.S. hurricane woes
Gold surges on U.S. hurricane woes

It's been a quiet day today globally, with little in the way of movements on the currency markets and in equities. However, gold has jumped into action and broken through the 130...

Oil set to turn on data
Oil set to turn on data

Crude oil has been doing the rounds on media as it sits at a key turning point according to various analysts, and it's easy to see why given that market trending seems ...


The influence of commodity analysis on Forex trade

How investor can realize a profit on the raw materials market, despite high capital requirements and other difficulties when dealing with commodities? The answer is simple - to make investments via the foreign exchange market. Like other financial markets, the Forex market has a direct communication to other types of investment assets. This communication could be the direct one (when both assets enhance), or reverse (when one assets grows in price, the other falls). Such relationships help investors to obtain admittance to other markets, and are of great help when analyzing trends on the world market.

Types of Basic Commodities

The basic commodities on the raw materials market are the class of assets that includes itself raw materials and resources supplied in an ordinary way and available for an exchange. These examples include:   

  • Metals, such as iron ore, aluminum, silver or gold
  • Foodstuffs, such as wheat, rice, sugar, salt, coffee beans and soya beans
  • Energy commodities, such as oil, coal, natural gas and electricity.

On the actual commodity market the bulk of transactions go to trade futures – the contracts, time of delivery of which occurs in a certain period in the future. The benefit of the raw materials market participants consists of the exchange gain between buying price and futures contract selling. This feature offers promising opportunities for income acquisition, making the commodity market instruments attractive to private traders. Commodity prices on the raw materials market are usually specified in U.S. dollars. If the U.S. dollar is not the currency of your trading account, you should be aware that exchange rates fluctuations will affect your results.

The basic commodities could be traded with many brokers by the instrumentality of contracts for difference (CFD). 

Commodity Market and the Exchange Rates

The economics of many countries are heavily dependent on basic commodities exports, for example, Australia, Brazil and Canada. Value of currency in these countries is often influenced by commodity prices.

For example, Australia is an important producer of gold. If the price of the gold increases, appears the need for more Australian dollars amount in order to purchase it, and thus, the price of the Australian dollar will increase.