Metals

This asset group includes precious metals like gold and silver, and industrial metals like copper. They are often seen as a store of value, a hedge against inflation, or a way to diversify an investment portfolio.

The price of metals is affected by the following factors:

Supply and demand. Industrial metals are heavily affected by manufacturing needs and infrastructure development. Higher industrial demand increases their value, while an oversupply pushes prices down.

Economic indicators. Precious metals are driven by global economic conditions, including inflation, economic growth and investor confidence. In times of uncertainty, investors use gold as a safe haven, increasing its demand and price.

Currency fluctuations. Most metals are priced in USD. A weaker dollar makes metals cheaper for foreign investors, driving demand and raising prices. Conversely, a stronger dollar can reduce demand and lower prices.

Geopolitical events and interest rates. Geopolitical instability and changes in central bank policies can make metals more attractive to investors. For example, falling interest rates or geopolitical conflict often boost the appeal of metals like gold.

Tips for traders:

Use precious metals as a hedge. They can help protect your portfolio during periods of inflation or economic uncertainty.

Study key price drivers. Stay aware of how industrial demand, economic trends and geopolitical events are affecting the price of each metal.

Keep an eye on market sentiment. Along with economic indicators, knowing the current market sentiment will help you anticipate price movements.

Analyze price charts and patterns to spot optimal entry and exit points for your trades.