Commodities Trading

Commodity trading is the buying and selling of raw materials and primary goods, such as precious metals, energy products and agricultural produce. Prices are set by global supply and demand, which means they respond to factors such as mining output, weather, production quotas and geopolitical events. Most retail traders access these markets through derivatives rather than by taking physical delivery, which allows them to speculate on price movements in either direction.

A commodity CFD is a contract for difference that lets you trade the price movement of a commodity without owning or taking delivery of the underlying asset. You and the broker exchange the difference between the price at which the position is opened and the price at which it is closed, meaning you can take a position on gold or oil without storing or transporting anything. Commodity CFDs also allow you to go long or short, so you can trade both rising and falling markets.

Yes, though commodities can move sharply and some, such as natural gas and crude oil, are among the more volatile markets available. Beginners should start on a demo account to learn how contract sizes, spreads and overnight financing work before committing real funds, and should use stop loss orders and conservative position sizing from the outset. Gold is often where newer traders begin, as it tends to be less volatile than energy markets and is widely covered in daily market analysis.

Commodity prices are driven primarily by the balance between supply and demand, but several forces move that balance:

• Supply-side factors – production quotas such as OPEC+ decisions, mine output and labour action, refinery capacity and shipping disruption
• Demand-side factors – global economic growth, industrial and manufacturing activity, and seasonal consumption patterns
• The US dollar – most commodities are priced in dollars, so a weaker dollar tends to support prices and a stronger dollar tends to weigh on them
• Interest rates and inflation – higher real rates raise the cost of holding non-yielding assets such as gold
• Geopolitical events – conflict, sanctions and trade restrictions can disrupt supply quickly
• Weather – a major driver of natural gas and agricultural prices

Gold is regarded as a safe haven because it holds value independently of any single government, central bank or company, and cannot be devalued by monetary policy in the way a currency can. During periods of market stress, high inflation or geopolitical uncertainty, investors often move capital into gold, which is why its price frequently rises when equities fall. Gold also tends to strengthen when the US dollar weakens or when real interest rates decline, since it pays no yield and becomes relatively more attractive as the return on cash falls.

Crude oil is traded against two main benchmarks: UK Brent, the seaborne international reference, and US Crude, also known as WTI, the North American reference. Traders speculate on the price difference between the two, or take positions on either individually, using spot CFDs that require no physical delivery. Prices respond mainly to OPEC+ production decisions, weekly US inventory data, refinery activity and geopolitical events affecting supply routes, which makes the economic calendar an important tool for oil traders.

1. Diversify their trading portfolio
2. Access global markets
3. Trade during periods of economic uncertainty
4. Benefit from price movements in precious metals and energy products
5. Gain exposure to inflation-sensitive assets such as gold

Yes. All iFX Brokers commodity instruments are available on both MetaTrader 4 and MetaTrader 5, with the same symbols, charting tools and order types on each. You can apply technical indicators, set stop loss and take profit levels, and run automated strategies on commodities exactly as you would on forex pairs. Both platforms are also available on mobile, so you can monitor positions in markets that trade close to around the clock.

iFX Brokers offers spot CFDs across precious metals and energy:

Mini contracts on gold and silver make these markets accessible at smaller position sizes. All twelve instruments are available on both MetaTrader 4 and MetaTrader 5.

• Gold (XAU/USD) – Traders monitor gold as the primary safe-haven asset, where price typically strengthens when the US dollar weakens, real interest rates fall, or geopolitical risk rises.
• Silver (XAG/USD) – Traders monitor silver for its dual role as both a precious metal and an industrial input, which makes it more volatile than gold and more sensitive to manufacturing demand.
• Brent Crude Oil – Traders monitor Brent as the global oil benchmark, where price responds to OPEC+ supply decisions, seaborne shipping disruption and geopolitical tension.
• WTI Crude Oil – Traders monitor WTI as the US oil benchmark, where price reflects American production levels, weekly inventory data and domestic refining demand.
• Natural Gas – Traders monitor natural gas for its pronounced seasonality, where weather forecasts, storage levels and heating or cooling demand drive some of the sharpest moves in the energy market.
• Platinum – Traders monitor platinum for its heavily concentrated supply, with most global output mined in South Africa, and for demand tied to diesel autocatalysts and industrial use.
• Palladium – Traders monitor palladium for its exposure to petrol vehicle emissions systems and a supply base concentrated in Russia and South Africa, which leaves it prone to sharp squeezes.