International Gold Index launched by S-Network
S-Network Global Indexes has launched the S-Network International Gold Index (GLDP), which consists of gold and key foreign exchange rates.
Denominated in US dollars, the index offers long exposure to gold as if the gold were purchased using equal amounts of the European euro, Japanese yen, UK pound and US dollar.
The index is designed to enhance the safe haven nature of gold in times of severe economic stress.
Live calculation of the index began on 28 November and historic data is available from 13 December 2004. The GLDP is calculated on excess return and total return bases in both USD and EUR.
Joseph LaCorte, chief executive of S-Network, says: “Recently, gold’s long-standing role as a safe haven during periods of economic turmoil has been compromised by the equally strong role of the US dollar as a safe haven.”
GLDP is intended to diminish the negative impact a strong US dollar has on the price of gold during such periods.
Richard Phillips, senior index analyst at S-Network, says: “GLDP is uniquely constructed and is the first index to use foreign exchange forward contracts to gain exposure to the price of gold.”
The S-Network International Gold Index is published and calculated by S-Network Global Indexes.
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