Top 10 Most Traded Commodities in India: The Global Trader’s Guide

What are commodities for Indian traders

In simple terms, commodities are basic goods that can be standardised and traded in bulk. They are the raw materials that power the global economy. In India you see them in everyday life as fuel at the pump, jewellery in shops, food on the table, and even in the cables that carry electricity in your home.

Broadly, commodities fall into a few groups:

• Energy such as crude oil and natural gas
• Precious and industrial metals such as gold, silver, and copper
• Agricultural and soft commodities such as wheat, soybeans, coffee, and cotton

On global exchanges and through brokers, many of these commodities are traded using futures, options, or contracts for difference. 

Why more Indian traders are choosing commodity CFDs

Indian traders have grown up with MCX and other local exchanges, so the move towards commodity CFDs is not about replacing what exists. It is about adding a flexible way to trade global benchmarks around the clock.

No physical delivery stress

On Indian exchanges, some commodity futures are now physically settled near expiry. If you hold certain contracts into the final days and forget to square off, you can be pushed toward delivery or cash settlement at a price you did not intend.TMGM

With commodity CFDs, you trade price movements only. Positions are cash settled through your broker account, and you can choose when to close the trade rather than worry about warehouses or storage.

Access to global benchmarks and hours

CFDs quote global reference prices such as XAU against USD for gold or WTI and Brent benchmarks for oil. Markets react to events in the United States, Europe, and China, often during late evening India time. With CFDs you can trade almost twenty four hours a day, five days a week, instead of being limited to local exchange hours.

If you are new to the CFD structure itself, it is worth reading a foundation article on what is CFD trading before you focus on any specific commodity.

Use of leverage with clear risk framework

Commodity CFDs are leveraged products. You put down a margin to control a larger notional position. This can help you use capital more efficiently, but it also magnifies losses. TMGM has India specific education on what leverage means for India traders, and the same principles apply when you use leverage on commodities.

As always, the key is position sizing, stop loss discipline, and only risking money you can afford to lose.

The 10 most traded commodities Indian traders follow

Below are ten heavily traded global commodities that Indian traders commonly watch. The focus is on international benchmarks that you can access through CFD brokers rather than only domestic contracts.

1. Gold XAU against USD

Gold has a special place in Indian culture and portfolios, but global traders often watch XAU against USD rather than prices per ten grams. This pair tracks the spot value of gold in dollars and is one of the most liquid markets in the world.

When you trade gold CFDs based on XAU against USD, you are effectively trading the international benchmark that influences local gold prices in India. That makes it a natural next step after you understand gold trading in India.

For Indian traders, gold often acts as a hedge during periods of inflation, currency weakness, or global uncertainty. TMGM also covers the benefits of trading gold CFDs in India, including how margin and contract size work.

2. Silver XAG against USD

Silver is another precious metal with deep roots in Indian households, but its behaviour is different from gold. It combines investment appeal with strong industrial demand in electronics and solar panels, so prices can move sharply when technology or manufacturing cycles change.

For traders, XAG against USD often shows higher day to day volatility than gold, which can be attractive if you like active strategies. Before you place your first order, it is useful to go through a practical guide on how to trade silver so you understand tick value, contract size, and common technical levels.

3. WTI crude oil United States oil

West Texas Intermediate, or WTI, is a light sweet crude oil benchmark used widely in North America. It is priced at the Cushing hub in the United States and is one of the key reference points for global oil markets.

WTI prices react quickly to United States inventory reports, Federal Reserve policy, and economic data. Because the contract is popular with short term traders, intraday moves can be very active. TMGM has a dedicated article on how to trade WTI crude oil, which walks through chart patterns, news flow, and risk management specific to this benchmark.

4. Brent crude oil United Kingdom oil

Brent is the other major crude oil benchmark. It is based on a blend of North Sea crudes and is used as a reference for more than half of global seaborne oil trade.

For Indian traders, Brent is particularly important because it influences the prices of many grades imported into Asia. Differences between Brent and WTI can open up trading opportunities, especially around supply decisions from OPEC and other large producers. To understand how this benchmark behaves, you can explore TMGM education on Brent crude oil and broader crude oil trading.

5. Natural gas

Natural gas is known among traders as one of the most volatile energy markets. Certain natural gas futures have even earned the nickname widow maker because of their sharp price swings during weather driven demand spikes.

Demand for gas is tied to heating needs, electricity generation, and industrial use. Prices can react strongly to storage data, winter forecasts, and changes in liquefied natural gas exports. TMGM covers strategies that combine oil trading and gas in the same energy watch list so Indian traders can see how these related markets move together and sometimes diverge.

6. Copper

Copper is used in wiring, construction, and renewable energy infrastructure, which is why traders often call it the doctor of the global economy. When manufacturing and infrastructure spending rise, copper demand and prices usually strengthen.

Many Indian traders do not trade copper directly but track its global price as an indicator of risk appetite. Even if you are focused on currency pairs or indices, watching copper charts can provide context for broader risk on or risk off phases. 

Availability of specific copper contracts as CFDs depends on the product schedule of your broker and your account type, so it is always wise to check the latest instrument list in the TMGM Portal.

7. Platinum

Platinum is a precious metal with strong industrial use, especially in vehicle exhaust systems and certain hydrogen and fuel cell technologies. It is rarer than gold and often trades with a different pattern because demand is closely linked to auto production and emissions regulation.

For traders in India, platinum can act as a diversifier within metals. It tends to respond differently to interest rate changes and economic data compared with gold and silver. When you read about why investors trade precious metals, platinum is often part of that broader discussion even if it receives less media attention.

8. Palladium

Palladium is another metal used in catalytic converters and certain industrial processes. Global supply is relatively concentrated, and demand from the auto industry can lead to extended periods of tightness or surplus. This combination of concentrated supply and changing demand can produce very wide trading ranges.

Because of that volatility, palladium is usually suited to experienced traders who are comfortable with sudden moves and strict risk limits. Some international brokers list palladium CFDs when liquidity allows. If you plan to trade it through TMGM, you should first confirm current contract availability in your account and then size positions conservatively.

9. Cotton based on United States benchmarks

Indian traders have long followed cotton because it links directly to textiles and clothing, two major industries in the country. Global cotton prices are often set by contracts based on United States benchmarks, which are watched closely by merchants and mills around the world.

When you look at global cotton charts, you are not just following one crop. You are tracking a price that influences margins, export competitiveness, and even fashion retail trends. Traders who focus on soft commodities often combine cotton with coffee and sugar in a single watch list. Availability of cotton based CFDs depends on your broker’s product line, so you should always refer to TMGM’s contract specifications before building a strategy around it.

10. Coffee and sugar as soft commodities

Even though India is traditionally more of a tea consuming country, some traders watch coffee and sugar futures because they are major international markets. Their prices are heavily influenced by weather in Brazil and other key producing regions, changes in export policy, and global consumption patterns.

Even if you never trade these contracts directly, they are useful examples of how global demand, harvest cycles, and shipping constraints affect food related commodity prices. Soft commodity CFDs may be available on some accounts, and product coverage can change over time. The safest approach is to treat coffee and sugar as case studies for understanding soft commodities unless you have confirmed live access through your TMGM account.

How to start trading commodities with TMGM

If you are an Indian trader who already understands equities or currency markets, stepping into global commodities is easier when you follow a simple structure.

Step 1: Open and verify your TMGM account

The first step is to create a live account, complete basic details, and upload identification documents for verification. This process is similar to opening any account with a global CFD broker for traders in India. Once approved, you can fund your account in a supported currency and see available instruments inside the platform and Portal.

Step 2: Choose your trading platform

TMGM supports MetaTrader four and MetaTrader five, which are widely used platforms among active traders worldwide. Compared with basic web only terminals, MetaTrader gives you flexible charting, multiple order types, and the ability to work with indicators and templates.

If commodities are your focus, you can build a watch list that combines gold, oil, silver, and major indices, and you can always access background education in the TMGM Academy, including forex trading in India and other asset classes.

Step 3: Study charts and build a plan

Before you place live trades in any commodity, spend time on charts and education. Articles that discuss benefits of trading CFDs and more advanced oil trading strategies can help you understand how leveraged contracts behave around news events.

Use a demo account first, test simple setups on one or two commodities, and only then consider moving to real money. The goal is steady learning, not fast excitement.

Important risks Indian traders should consider

Commodity CFDs can open up global opportunities, but they also concentrate risk.

Leverage risk

Leverage allows you to control a large notional exposure with a small margin. This is powerful, but it cuts both ways. A modest move against your position in gold or oil can cause a large percentage loss on your account.

If you are unsure how leverage works in detail, revisit the dedicated guide on what leverage means for India traders and apply the same care when you trade commodities.

Market and event risk

Commodities respond quickly to unexpected events. An OPEC decision, a surprise inventory report, extreme weather, or a central bank announcement can move prices in seconds. Gaps can appear when markets reopen after weekends or major holidays.

This means stop losses and position size settings are just as important as your chart pattern or indicator signal.

Counterparty and regulatory considerations

When you trade CFDs, your broker is your counterparty. TMGM operates under multiple international licences and must follow capital and client money rules, but any overseas trading from India should be approached with care. Always stay updated on guidance from Indian authorities and treat this article as education only, not personal legal or tax advice.

Conclusion for Indian commodity traders

Commodity trading has evolved far beyond simply buying metal and storing it in a locker or rolling local futures on MCX. Indian traders today can follow and trade global price action in gold, oil, metals, and selected soft commodities through CFDs, using platforms and tools once reserved for professional desks.

TMGM offers Indian traders access to international markets, advanced charting platforms, and a growing library of education that covers everything from gold trading to broader most traded commodities. If CFDs and global commodities fit your goals and risk tolerance, you can start with a TMGM demo account to understand how these markets move, then transition to a live account once you have a clear plan and risk rules.

Trade carefully, respect leverage, and treat each commodity as part of a wider portfolio rather than a quick way to chase headlines.