Since the beginning of time gold, silver, copper, platinum and palladium have been well known as valuable, the reason for their high value is due to their rarity. Metal commodities offer market participants a wealth of trading options. From hedging financial risk to securing the materials necessary for manufacturing, metal futures can satisfy a wide variety of needs. Gold, copper, and silver are the most popular in terms of daily traded volumes. Platinum, aluminium, steel, and even uranium are less-frequently traded exotic offerings.
Several distinct factors come into play when analyzing the prices of precious metals:
- Supply – can be affected by decline in production and political instability.
- Demand – mainly comes from jewelry, use in everyday technological products, and for investment purposes
- Market Volatility – Precious metals have often been used as a safe haven investment when markets are unpredictable
- Currency strength – Most precious metals are priced in USD, and thus it would be wise to monitor the dollar index in order to better forecast the price dynamics.