The 'commodity value' represents the intrinsic value of a particular asset within its market, which is reflected by its price. This can change depending on market changes and updates. News trading involves following and responding to current social, political, and economic changes, which can be beneficial to both short and long-term traders.
For example, if a report was published stating that demand for gold has hit a ten-year low, many traders would look to sell gold over fears that its value is likely to decrease. A sudden rise in the number of people selling gold could have an impact on your trades, as it would push gold prices lower and the value of gold would increase. Gold prices can also affect the price of copper, silver or other precious metals as well. Read about how to invest in gold to understand the best strategies, indicators and methods of technical analysis for the commodity market.
High impact news bulletins can have an impact on the commodities market and the value of certain commodities. By understanding how to take advantage of these events, you may be able to increase your profitability.