Commodities are the fundamental building blocks of the world economy; the physical goods that are both used directly by consumers and industries to produce other consumer goods. There are several types of commodities, including:
- Energy (Crude Oil’s – WTI & Brent and U.S traded Natural Gas)
- Precious Metals (Gold, Silver and Platinum)
Commodity prices will be affected by a wide range of factors, including:
- Supply and demand
- Economic and political factors
- The value of the U.S. dollars (Majority of commodity prices are denominated in USD)
These products tend to be homogeneous in nature and play a fundamental role in the global economy. Volatility in commodity markets can often be seen to increase whenever there are disruptions of supply or demand around the globe, other factors that might affect commodity prices are social or political unrest, or unusual weather conditions.
Commodities like Gold and other precious metals are popular with investors as they have long been considered a store of value and therefore, a ‘safe haven’. These safe haven assets have historically held their value during times of uncertainty and a hedge against inflation or currency devaluation.
Why trade Commodities with Sandton Capital Markets?
- Excellent spreads and prices
- Leverage up to 100:1
- All traded per whole tick movement
Commodities trading – Leverage & Trading Hours:
|US Crude (WTI)||100:1||22:00-21:00|
|UK Crude (Brent)||100:1||22:00 Sunday – 21:00 Monday
00:00 Tuesday – 22:00 Friday (Friday 21:00 Closed)