Commodity

A commodity is a raw material or primary agricultural product that can be bought, sold, and traded on exchanges, such as gold, oil, wheat, or natural gas. Commodities are standardized and interchangeable with other goods of the same type, making them suitable for trading on futures markets. Commodity prices are driven by global supply and demand dynamics, weather patterns, geopolitical events, and currency fluctuations, making them a key asset class for diversified portfolios.