Did you know that there are several factors at play that affect the price of commodities at any point in time? That said, not all factors affect commodity prices in a similar fashion and magnitude. Some have a significant impact on commodity prices, while others don't have much of an impact.
Below mentioned are the key fundamental and macro-economic factors that need to be regularly monitored when trading or tracking non-Agro Commodities.
Key factors that impact GOLD:
- Dollar Index
- US real Yields (proxy: US 10y TIPS yield)
- Market sentiment
- Path of the FEDās monetary policy
- US Nonfarm Payrolls data
- US GDP data
- Physical demand from India, China
- SPDR ETF Gold inventory
- COMEX CFTC speculative positioning
Key factors that impact SILVER:
- Goldās price trend
- Market sentiment
- Base Metals price trend
Key factors that impact CRUDE OIL:
- OPEC demand & supply forecast
- OPEC bi-annual meeting outcome
- Weekly US Crude oil inventory & production
- Geopolitical developments among major producers
- NYMEX and/or BRENT Futures Spread
- US economic health
- China economic health
- Dollar Index
- Market Sentiment
Key factors that impact NATURAL GAS:
- Weekly US Nat Gas inventory
- Weekly US Nat Gas production
- Weather conditions in the US
- Geopolitical situation among major producers
Key factors that impact COPPER:
- Manufacturing data from China
- Manufacturing data from the US
- Supply situation in Chile & Peru
- Trend of LME inventory
- LME spot and futures price spread
- PBOC and FED monetary policy
- Dollar Index
- Market Sentiment
Key factors that impact ZINC:
- Manufacturing data from China
- Supply situation in China
- Trend of LME inventory
- LME spot and futures price spread
- Dollar Index
- Market Sentiment
Key factors that impact NICKEL:
- Health of Stainless-Steel sector in China
- Health of EV sector
- Supply situation in Indonesia and Russia
- Trend of LME inventory
- LME spot and futures price spread
- Dollar Index
- Market Sentiment
Key factors that impact ALUMINIUM:
- Manufacturing data from China
- Supply situation in China
- Trend of LME inventory
- LME spot and futures price spread
- Alumina price
- Dollar Index
- Market Sentiment
Key factors that impact LEAD:
- Auto sector health in China & US
- Industrial health in China & US
- Supply situation in China
- Developments in the EV sector
- Trend of LME inventory
- LME spot and futures price spread
- Dollar Index
- Market Sentiment
To learn about them in detail, visit the Commodities module in FYERS School of Stocks, the link for which is shared below: