Understanding Fundamental Analysis in Commodity Trading Fundamental analysis is an analytical approach used to ascertain the intrinsic value of an asset by evaluating pertinent economic, financial, and other qualitative and quantitative factors. When this method is applied to commodities, it involves a thorough examination of supply and demand dynamics, geopolitical influences, and macroeconomic variables. This type of analysis provides traders with the insights needed to predict price movements and make informed trading decisions. Supply and Demand Dynamics At the heart of fundamental analysis in commodities is the understanding of supply and demand. The balance between these forces is what ultimately influences price fluctuations in theRead More →

The Function of Central Banks in Gold and Precious Metals Trading Central banks serve a pivotal role in the global economic system. They are instrumental in influencing monetary policy, stabilizing currencies, and engaging in the trade of gold and other precious metals. This engagement has far-reaching implications for both national economies and the international market, reflecting the essential functions these institutions fulfill. Central Banks’ Holdings and Reserves Historically, central banks have accumulated substantial reserves of gold as a key component of their foreign exchange reserves. These holdings are crucial for maintaining economic stability during times of market volatility. Gold is considered a universal currency withRead More →