A Study On Commodity Futures With Reference To Selected Precious Metals At Iifl Wealth Management Ltd

Abstract

Commodity futures play a crucial role in global financial markets by providing a structured mechanism for price discovery, risk management, and speculative opportunities. Among various commodities, precious metals such as gold, silver, platinum, and palladium hold significant importance due to their intrinsic value, industrial applications, and role as a hedge against inflation and economic uncertainty. This study explores the dynamics of commodity futures trading in the context of selected precious metals. It examines factors influencing price fluctuations, trading volume, and market volatility while analyzing the role of futures contracts in mitigating price risks. The research also investigates the impact of macroeconomic indicators, geopolitical events, and market speculation on the price movements of precious metal futures. Using historical data, statistical analysis, and financial modeling, this study aims to provide insights into the efficiency and effectiveness of commodity futures in price stabilization and investment diversification. The findings will contribute to a better understanding of how futures markets function in the precious metals segment and their implications for investors, traders, and policymakers.