Commodities exchanges usually trade futures contracts on commodities, for example, in a certain month, A farmer raising corn can sell a future contract on his corn, which will not be harvested for several months, and guarantee the price he will be paid when he delivers; a breakfast cereal producer buys the contract now and guarantees the price will not go up when it is delivered. This protects the farmer from price drops and the buyer from price rises.
Many people don’t know that you can trade gold on forex too. Many forex broker platforms that you use to trade forex, allow trading of gold and silver against the US Dollar from the same platform. Precious metals have high demand in the industrial sector and as the global economy recovers from the recession, the prices of gold and silver are expected to skyrockets as industrial production picks up and consumers start buying again. Gold considered to be a safe haven in times of political and financial uncertainty.
Recently gold price remains in a Bull Market That Will Keep Prices Rising another 4 to 10 Years!