As with almost any market, supply and demand has a huge impact on the commodity market. For
example, if oil production levels in traditionally prolific areas such as the Middle East were
to drop, those commodity prices would be likely to rise.
Commodity trading is widely seen as higher risk because the market can also be affected by
circumstances outside of traders’ control. For example, major political events such as the US
elections have historically had a significant impact on the price of precious metals –
especially gold – so that is one commodity market that traders will monitor closely when
candidates embark on their campaigns.