Investors in Lebanon are always seeking new ways to grow their wealth or produce a second revenue specially in the current economy. One such method in Lebanon that has gained popularity in recent years is commodity trading.

Commodity trading is buying and selling raw materials or primary agricultural products. Commodities are split into two categories: hard commodities (like oil, gold, silver) and soft commodities (such as coffee and wheat). The prices of these products fluctuate based on supply and demand dynamics, geopolitical events, and economic indicators.

Here are some important reasons why you should consider trading commodities:

1. Diverse portfolio: You can reduce the risk on your portfolio by adding commodities and not only focusing on one instrument.
2. Inflation hedge: Commodities can act as a safeguard in case of inflation as commodities are known to increase in value in time of crises.
   
   

What Moves Commodity Prices? Here are some key reasons the price of commodities move based upon:

• Currency fluctuations: Most of the commodities are prices in USD and they are affected upon the increase and decrease of the dollar currency.
• Geopolitical and economic stability: Political events and instability in key regions and oil-based countries for example can influence commodity prices. Wars, political unrest, or economic sanctions where a commodity is produced can disrupt supply chains and affect prices.
• Inflation and interest rates: When there’s inflation, commodities typically rise along with it.
• Supply and demand: This is the most fundamental factor. If the supply of a commodity is low relative to demand, prices rise. If supply is high and demand is low, prices fall.

Join and trade the international markets directly from Beirut through online platforms like Meta Trader 5 (MT5). Traders shall choose the best forex broker that will offer the best trading platform. Look for brokers that offer competitive spreads and fast execution speeds. XGLOBAL is often highlighted as a reputable broker for traders due to its safety and security of its business and the user-friendly platform mt5.

Many traders prefer MT5 because it provides advanced charting tools, and the platform supports both currency trading and commodity trading for the convenience of the Lebanese trader.

Register with XGLOBAL for a demo forex trading account as the install link is available directly on our website and try out the mt5 demo before proceeding to a real forex trading account.