ECONOMETRIC ANALYSIS OF COMMODITY MARKETS: UNDERSTANDING PRICE VOLATILITY
Abstract
This article explores the application of econometric analysis in understanding price volatility in commodity markets. Given the global economic significance of commodities, such as oil, grains, and metals, understanding the factors that lead to price changes is essential for investors, policymakers, and consumers. Through econometric models, including regression analysis and time-series analysis, this study examines the impact of supply and demand dynamics, geopolitical events, and macroeconomic indicators on commodity prices. By analyzing historical data and applying statistical methods, the article provides insights into the complexities of commodity markets and suggests ways to predict future price movements. The findings highlight the importance of a multifaceted approach in analyzing commodity price volatility, considering both market-specific drivers and broader economic factors.