TRADING CFDS ON COMMODITIES — Precious Metals
Metals are a class of commodities that are extracted, mined and used in a variety of manners. The most popular is gold, which is thought of as jewelry, and hedge against inflation, a safety risk, and an easy to move source of wealth.
Metals will, therefore, include gold, silver, palladium, platinum, and copper. These assets are listed for trading on our WebTrader platform.
The commodity contracts on metal assets are traded on a CFD basis; the physical metal assets are not held by the trader, and are not exchanged between buyer and seller or between dealer and trader.
What you are trading are contracts that are based on the price changes for each metal as the asset value goes up or down daily.
Metals are particularly sensitive to economic fundamentals. For instance, gold is delicate to the state of the global markets and is traded based on risk-on/risk-off sentiment. Silver is an industrial raw material used in several industries. Its value is a factor of demand and supply in the relevant sectors.
Copper is primarily exported from Australia to China, where it is one of the raw materials feeding China’s buzzing industries. News about manufacturing, growth (GDP), and the industrial sentiment is a significant factor affecting this metal.
Trading metals will test the trader’s knowledge of world economics.