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The price of a commodity share increases and decreases in the same manner as that of a share of a company. By demand and also due to many different environmental factors. Commodities are traded in India with the Multi Commodity Exchange(MCX) and it works on the similar basis of the NSE and BSE. People buy commodity lots at a price agreeable to them. Thus demand and supply governs the fluctuation. I hope that answers your question.

2006-12-28 22:45:17 · answer #1 · answered by Nemesis 1 · 0 0

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