Definition
A basic raw material that's interchangeable no matter who produces it, like oil, gold, wheat or copper.
The story
An ounce of gold is an ounce of gold, whoever mined it. That sameness is what lets commodities trade on exchanges through standardized futures contracts. Their prices swing with supply and demand: weather, wars, mining output, factory activity.
Why markets watch it
Commodity prices feed straight into inflation, which links them to the Fed and to stocks.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms