The S&P GSCI increased 5.87 per cent in October as all five major sectors improved on the month, according to Standard & Poor’s.
The S&P GSCI Energy Index led the way with a 7.05 per cent gain in October, boosting the S&P GSCI year-to-date gain to 10.82 per cent.
“Continued US dollar weakness, and the first monthly decline in the S&P 500 (-1.86 per cent TR) since February, left the S&P GSCI playing some catch-up to equities in October,” says Michael McGlone, director of commodity indexing at Standard & Poor’s.
Led by strength in zinc and copper, the S&P GSCI Industrial Metals Index maintained its status as the 2009 leader, adding 3.28 per cent in October for a year-to-date gain of 61.98 per cent.
Gold continued to appreciate above USD1,000/oz, resulting in an October increase of 2.47 per cent in the S&P GSCI Precious Metals Index, for a year-to-date gain of 19.06 per cent.
“With US base interest rates the lowest globally, most physical assets priced in US dollars, including gold, have had very little opportunity cost competition and have been appreciating accordingly in 2009,” adds McGlone.
Poor harvest conditions and a delayed crop supported the grains, boosting the S&P GSCI Agriculture Index to increase 3.05 per cent on the month. Livestock has been the year’s weakest sector, but strength in lean hogs left the S&P GSCI Livestock Index with a return of +3.10 per cent on the month, lessening the index’s year-to-date decline to -13.99 per cent.