As the wider value of the USD rises and falls, so can the price of commodities. On the flip side, the price of a commodity will fall when faced with decreasing demand and increasing supply.Ĭommodities are generally priced in USD. Prices will also rise when there is a fall in the overall supply or inventory of a commodity. The fundamental rule is that commodity prices will rise with increasing demand.
As the supply and demand for commodities change, the price of the commodity will also change.