By separating signal from noise, we helped traders avoid chasing unsustainable rallies in the largest commodity in the world. Gold is valued as a so-called ‘safe haven’ asset, and tends to shine in times of economic uncertainty – though this doesn’t mean that its price is invulnerable to selloffs. Discover which are the highest-traded commodities by our clients, and decide whether any fit your CFD trading strategy. The most traded commodities for decades have been firmly established as the biggest markets, most liquid and commonly traded worldwide.
The World’s Largest Traded Commodity — Gold
Technology, construction, fashion and investing are the main industries which demand vast amounts of metals. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world. In 2022 the Singapore Exchange traded 12,476,340 Iron cmc markets review Ore Futures Contracts, which is a massive 1,247.7 million tons.
Another important factor in the precious metal’s pricing is the demand for gold bullion. Central banks around the world hold part of their reserves in gold and buy the precious metal. When the volume of these purchases begins to grow, gold also tends to surge in price.
Commodities under pressure amid China’s weakening economic backdrop
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Gold: Most Valuable Commodity for Trading
- Precious metals will be the exception, as elevated global economic uncertainty is likely to keep investor demand high.
- Here is a list of the 11 most actively traded commodities in the world by volume.
- In 2022 the Singapore Exchange traded 12,476,340 Iron Ore Futures Contracts, which is a massive 1,247.7 million tons.
- That said, automotive demand will tail off going forward as palladium substitution runs its course and the transition to electric vehicles continues.
- The largest gold-producing countries are Australia, China and Russia, while China and India dominate global demand due to their massive jewelry markets.
So when you’re deciding the best commodity to trade, think about your goals and strategy – and always be sure to research the market thoroughly. For privacy and data protection related complaints please contact us at Please read our PRIVACY POLICY STATEMENT for more information on handling of personal data. Statistics or past performance is not a guarantee of the future performance of the particular product you are considering.
These commodities are closely watched in the financial markets, where fluctuations can influence global economic trends and trading strategies. Silver is mainly used in industry, in the production of electronics and medical equipment. In investments, silver has gained popularity in the form of investment coins, which, due to their low cost, are often an alternative to gold coins. Silver ETFs and derivative contracts such as futures and options are also gaining popularity. Commodities can include oil, gas, industrial and precious metals, as well as food products, of which the main ones are cocoa, coffee, tea, soybeans, and wheat.
On the supply side, growth is constrained by geopolitical instability in key oil-producing regions, underinvestment in new exploration projects, and tightening environmental regulations. That said, oil output will get a boost this year from the unwinding of OPEC+ cuts and higher output from the Permian Basin in the U.S. Our analysts’ Brent crude price forecast for 2025 is lower than last at around USD 75 per barrel, largely due to the aforementioned rise in supply. Coal remains a dominant energy source, particularly in electricity generation and steelmaking, despite growing environmental concerns. China, India and Indonesia are the top producers, with China also being the largest consumer, accounting for over half of global coal demand.
Brent Crude
Notably, sugar futures are often traded in national currencies, and trading in dollars only takes place on the ICE. The key marketplace for trading coffee bean futures is the Intercontinental Exchange (ICE) in the US, where Arabica contracts are traded. Robusta is traded mainly on the London International Financial Futures and Options Exchange (LIFFE). Futures for both types of coffee are traded on the Tokyo Grain Exchange (TGE). Commodity trading plays a crucial role in the world trade system, as there will always be demand for these commodities, and this demand is growing every year. These commodities also represent a significant part of the global manufacturing industry, and the stability of the global economy would be impossible without them.
- For example, coffee, which is one of the most traded commodities in the world, cannot be simply picked from a plant and put into a cup.
- South Africa dominates global production, accounting for nearly 70% of supply, with Russia and Zimbabwe also playing key roles.
- Since it is rarely mined in its pure form, silver is not as popular as gold.
- These commodities also represent a significant part of the global manufacturing industry, and the stability of the global economy would be impossible without them.
Investors dump commodities as recessionary fears peak
The price of major commodities tends to correlate with inflation indicators and is heavily dependent on fundamental factors, which makes forecasting much easier. In June 2020, following the WTI Futures price crash, the NYMEX (New York Mercantile Exchange) revived trading volumes, with an average of 1,870 contracts being traded each day. What drove this opportunity was not fleeting weather events, but a deeper structural oversupply in global coffee markets. For traders, knowing which are the most traded commodities in the world – and why – is fundamental. The difference between reacting to commodity price changes and anticipating them can define profitability. Gold contracts are now offered by virtually every broker in almost every corner of the world.
WTI Crude
The energy commodity market is by far the largest in terms of contracts traded and turnover. While there are many types of energy commodities available to trade, it’s the black gold which is traded the most. Brent Crude Oil is mostly traded on the ICE (Intercontinental Exhange), whereas WTI is mostly traded on CME (Chicago Mercantile Exchange). As WTI is drilled and stored inland, there are a number of logistical obstacles that limit production.
Iran, Russia and the U.S. are by far the largest producers, with the latter—along with Qatar—also the main exporter of liquefied natural gas (LNG). Demand for natural gas should continue to grow going forward as developing economies industrialize and increasingly turn to the fuel as a cleaner alternative to oil or coal. However, competition from renewables and energy efficiency improvements will still limit the upside potential for demand. Looking at prices, our panelists’ 2025 natural gas price forecast is higher across all key markets—in Asia, the EU and the U.S.— compared to the 2024 average. As with wheat, soybeans are traded on commodity markets in the form of soybean futures contracts.
Steel
Commodity trading on exchanges, in essence, revolves around long-term investment strategies. However, the most popular commodities are highly liquid and suitable for intraday trading or even scalping. At present, the world’s highly sought-after commodities allow traders with any amount of capital to earn on price differences. The most popular commodities include energy, industrial, and agricultural products, as well as metals. You can learn more about how to trade commodities in the live market in this article.