Precious metal prices: analyze the market trend

However, while gold is the metal on which the main investment efforts are concentrated, aluminum or nickel can also offer interesting opportunities for Forex traders. In fact, several base metal futures are traded on the commodity markets, so much so that there are even ETFs (“Exchange Traded Funds”) available to ordinary investors who follow base metals.

Since materials like aluminum and copper are more common in nature, their price is also more affordable; not surprisingly, these metals are widely used in numerous industrial and commercial applications. The widespread use of copper, for example, means that its price represents a general indicator of the global economic trend (copper is commonly used in construction): if the price falls below a certain threshold, it is probable that some economic sectors are slowing down.

Precious metals, especially gold and silver, are traditional safe-haven assets. Quite a few traders decide to focus on these with the aim of diversifying their investment portfolio, while at the same time obtaining protection from inflation. Due to their rarity, these metals have always been used in the history of humanity as materials with particular purposes: function of currency and creation of jewels among all.