Best Commodities for Day Trading

If you're into fast markets, sharp moves, and real-world action, day trading commodities might be right up your alley. Every month, traders around the world move over $2.5 trillion in commodity futures. And it’s not just pros on Wall Street; more and more individual traders are jumping in too. Why? Commodities like oil, gold, and natural gas check all the boxes: they’re liquid, they move fast, and they offer plenty of opportunities, especially if you like charts, news, or both.

So in this guide, we’re cutting through the noise and showing you the commodities that are actually worth watching and how to trade them smartly.

Top 5 Best Commodities for Day Trading

Some commodities are just more exciting to trade. The ones that move fast, have tight spreads, and attract a lot of volume are where day traders tend to hang out. Here are five you’ll want to keep on your radar.

Crude Oil (WTI & Brent)

If day trading had a poster child, crude oil would be it. Both WTI and Brent see massive volume every single day. That means you can get in and out of trades quickly, without much slippage and there’s almost always a setup to work with. For day traders, oil is perfect because it offers constant movement, clear trend setups, and heavy liquidity almost 24/5.

What really makes oil fun to trade is how sensitive it is to news. Whether it’s OPEC drama, U.S. inventory data (like that weekly EIA report), or geopolitical headlines, oil tends to react. Fast. 

Gold (XAU/USD)

Gold might be known as a safe haven, but don’t let that fool you it’s a day trader’s dream when markets get shaky. It reacts quickly to things like inflation reports, central bank announcements, and shifts in the U.S. dollar. Gold fits day trading perfectly because it respects technical patterns well, making it easier to plan entries, exits, and manage risk in volatile sessions.

The XAU/USD pair is a favorite because the price action tends to be clean and the volume is steady. If you’re weighing gold vs. USD, keep in mind gold usually shines when the dollar dips or inflation picks up. 

Natural Gas

Want something a little more unpredictable? Meet natural gas. This one’s famous for its wild swings. Prices can jump or tank within a few hours, making it ideal for traders who love volatility and don’t mind a bit of chaos. 

What drives it? A mix of things mainly weather patterns, seasonal demand, and that same EIA storage report. If you’re trading nat gas, keep your schedule clear on Thursdays. It’s a wild ride. Natural gas is a day trader’s playground because of its explosive short-term moves, which can produce huge opportunities with the right risk management. 

Silver (XAG/USD)

Silver is like gold’s younger sibling. It doesn’t get as much hype, but that’s the best part of it. It tends to move more than gold, with sharper percentage swings perfect for scalping or short-term setups. Day traders love silver because it combines liquidity with just enough volatility to make short-term price moves really worth chasing.

The XAG/USD pair has strong volume and respects technical levels, which makes it super tradeable. If you’re deciding between trading gold vs. silver, silver usually brings more action (and a bit more risk).

Coffee or Cocoa (Soft Commodities)

Last but not least, coffee and cocoa. These are the underdogs of day trading. They’re not as liquid as metals or energy, but when they move… they really move. For day traders, coffee and cocoa offer rare but powerful breakouts, giving those who catch the right news catalyst a shot at big, fast wins.

These soft commodities are heavily influenced by weather and supply news especially in places like Brazil or the Ivory Coast. A drought or crop disease report? Boom, prices can spike in no time. They’re not everyday trades, but when the setup is there, it’s usually explosive.

Key Factors When Choosing a Commodity to Day Trade

Before you start clicking around your trading platform, here’s the truth: not every commodity is worth your time. Here’s what actually matters when deciding what to trade.

Liquidity - You want to be able to get in and out of trades without drama. That’s where liquidity comes in. The more liquid a commodity is, the easier it is to trade without getting hit by weird spreads or slippage. Crude oil, gold, and silver? Solid choices here.

Volatility - This one’s huge. You need movement if you’re day trading. The most volatile commodities like natural gas, silver, and sometimes coffee can give you multiple trade setups in a single day. Just make sure your strategy can handle the swings.

Trading Hours - Not all commodities move the same throughout the day. Some light up during U.S. hours, others during European or Asian sessions. For example, the best time to trade oil is usually during the U.S. market opening. That’s when the volume and action kick in.

News Sensitivity - Commodities respond to news like few other assets do. An EIA report, an OPEC announcement, or even weather updates can spark massive moves. Trading commodities on news gives you windows of opportunity, but you’ve got to be fast.

Best Day Trading Strategies for Commodities

Now that you know what to trade, let’s talk about how to trade. Here are a few go-to strategies that work well in the commodity world.

Scalping - Scalping is fast and furious. You’re in and out within minutes, sometimes seconds, grabbing tiny moves again and again. This works best on high-volume, tight-spread commodities like oil, gold, or silver. If you’re into 1-minute trading strategies, this is your lane.

Breakout Trading - This strategy is all about catching momentum when price breaks through a key level like support or resistance. Gold breakout patterns and oil price breakouts are common. Wait for consolidation, then pounce when the market makes its move.

News-Based Trading - Some traders thrive on market chaos, and for them, news-based trading is where it’s at. Watching the calendar for events like EIA oil data or a Fed rate decision can lead to explosive (and short-lived) trading setups. You’ve got to be fast, focused, and ready to pull the trigger.

Risks of Day Trading Commodities

Day trading commodities is risky. The fast pace can be thrilling and brutal. Here’s what to watch out for.

Leverage Cuts Both Ways

Sure, trading with leverage sounds great. You can control big positions with a small amount of money. But the flip side? A small move against you can wipe out your account. This is one of the biggest leverage dangers in day trading. Respect it, or it’ll bite you.

Overnight Gaps

Sometimes, a trade runs into the next day (whether you meant to or not). That’s when overnight gaps come into play. A surprise announcement while you sleep can send prices soaring or crashing before the market reopens.

Margin Calls

If the market turns against you and you’re trading on margin, your broker might hit you with a margin call. That means you either add more funds or get kicked out of your position. Not exactly the kind of text message anyone likes waking up to.

Emotions Get in the Way

Panic. FOMO. Revenge trading. It happens to the best of us. But emotional trading can destroy even a solid strategy. The best traders stay calm, follow their plan, and know when to walk away.

Final Comments

Day trading commodities can be exciting, challenging, and, when done right, profitable. But it’s not just about picking random assets and hitting "buy." You’ve got to know what to trade, when to trade it, and how to manage the risks. Crude oil, gold, natural gas, silver, and even coffee all offer different styles and setups. Try a few out, see what fits your trading personality, and go from there.

If you’re just starting, don’t rush into real money. Open a demo account, test some strategies, and build your confidence first. And when you’re ready to go live, take the time to find the best broker for commodity trading, someone with tight spreads, reliable tools, and access to the markets you care about.

If you’re still figuring things out? That’s fine. Commodity trading for beginners can feel like a lot, but you’re not alone. Everyone starts somewhere. Stick with it, stay smart, and trade with purpose. You've got this.