NISM Certifications · NISM-Series-XV: Research Analyst · Fundamental Analysis of Commodities
Which of the following is a commodity whose price is typically most directly influenced by the US dollar exchange rate and global safe-haven demand?
Gold is the commodity most directly affected by the US dollar and safe-haven demand. It trades globally in dollars, and investors buy it during economic or geopolitical uncertainty. Vegetables, locally consumed sugar and cement are driven mainly by domestic supply and demand conditions.
- AFresh vegetables
- BGoldCorrect
- CSugar for local consumption
- DCement
Explanation
Gold is globally traded, priced in US dollars and sought as a safe haven during uncertainty, so dollar movements and risk sentiment influence it strongly. The other items are mainly domestic or perishable with local supply-demand drivers.
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