FREE Guide - 5 Chart Patterns You Need to Know!

Goldman Sachs Commodity Index - GSCI

What does Goldman Sachs Commodity Index - GSCI mean?

An index that measures commodities price movements and inflation in the world economy. Like the Standard & Poor's 500 index for stocks, the Goldman Sachs Commodity Index (GSCI) is a popular and well diversified index for commodities. It is commonly known as the S&P GSCI.

Futures Knowledge Explains Goldman Sachs Commodity Index - GSCI

The S&P GSCI contains a broad range of 24 commodities. The weights of each commodity in the index is determined by the commodity’s average world production in the last five years. The S&P GSCI is a world-production weighted index, and as a result it is usually heavily skewed to Energy commodities (over 70%).  It is based on the most liquid commodity futures, and provides a high level of diversification, both across sectors (ie. energy) and within each sub-sector (ie. Crude oil, Brent crude, natural gas, heating oil).

The Goldman Sachs Commodity Index is a good indicator of global inflation during a particular period.  For example, during January-April 2015, the S&P GSCI declined by 0.75% to 3,208...which confirms that the world is facing negative inflation (or deflation).

Get Your FREE Technical Analysis Guide!
Timing is everything, and with this guide, you'll learn how technical analysis can help find the right time to enter and exit your futures trades. Nearly 30 explanations and examples of the most popular technical analysis tools are all in this one handy guide. It's like having a futures trading mentor at your side!