Commodities are basic goods used in commerce that are interchangeable with other goods of the same type. They are often categorized into two main types: hard commodities, which are natural resources that must be mined or extracted, and soft commodities, which are agricultural products or livestock. Examples include gold, oil, and wheat. The trading of commodities plays a crucial role in the global economy, as they are essential for production and consumption. Prices for commodities can fluctuate based on supply and demand, geopolitical events, and economic conditions, making them a vital area of interest for investors and traders alike.