The Main Commodity Categories
Commodities are generally grouped into three families. Understanding which forces dominate each group is the first step to trading them well.
What Drives Commodity Prices
Commodity prices are ultimately set by physical supply and demand, but they are also shaped by the US dollar, inflation, weather, seasonality and geopolitics. Because most commodities are priced in dollars, a weaker dollar often lifts the complex — the same dynamic that drives gold.
How to Trade Commodities
Commodities trend strongly and can be highly volatile, so breakout and trend-following approaches are common. Whichever you choose, apply consistent risk management and stay aware of scheduled supply reports on the economic calendar.
Match a strategy to the market
Browse setups by asset class and volatility profile.