Commodities are real goods that have to be produced, stored and shipped. When supply is disrupted or demand surges, there is no quick fix: a new mine or harvest takes months or years.
That is why commodity prices can move sharply on supply news.
Oil and gas prices respond to conflicts, sanctions and production decisions by major producers.
A cut in output of a few percent can move prices by far more, because demand for energy barely changes in the short term.
Grains and soft commodities depend on the weather. A drought in a major growing region, a late frost or a flood can cut a harvest and lift prices worldwide.
Traders watch seasonal forecasts and crop reports closely.
Gold and silver have been stores of value for thousands of years. Gold in particular tends to rise when confidence falls: during crises, high inflation or a weakening US dollar.
It doesn't depend on any government or company to hold its value.
Economies grow at different speeds and central banks respond differently. Money tends to flow toward stronger growth and higher rates, so when two economies diverge, their currency pair often trends for months.
The forces behind the global engine.
