Stocks & Commodities V. 23:9 (52-53): Intermarket Review: Goldman Sachs by David Penn
GOLDMAN SACHS COMMODITIES INDEX (GSCI)
SUBGROUP—PRECIOUS METALS ($GPX)
The Goldman Sachs Commodities Index (GSCI) is a
world-production weighted index of commodity prices
based on the average quantity of production for the
last five years of available data. In addition to being a
benchmark against which commodity price performance can be judged, the subgroups of the GSCI
are equally reliable measures of the price performance
of the various commodities that make up the GSCI. The
provided weekly charts of these subgroups include
both the 20- and 50-period moving averages.
The GSCI Precious Metals subgroup includes both
gold and silver.
The bull market in precious metals intensified in 2004 after a correction that saw the group slip from their early spring highs. By the summer of 2004, however, precious metals had gotten their groove back, and
went on to notch higher highs by fall. The correction that
followed these late 2004 highs has been stickier than the one that befell $GPX in 2003, insofar as the index has slipped into a sideways consolidation, rather than the sort of post-correction rally of a year ago.