commodity index

A commodity index is a measurement that tracks the overall price changes of a diversified group of commodities, such as oil, gold, agricultural products, and metals. It functions like a financial report card, summarizing how commodity prices are moving collectively over time. Investors use commodity indexes to gauge market trends, manage risks, or invest indirectly in commodities without buying physical goods. These indexes help provide a broad view of the commodities market’s performance, reflecting supply, demand, and economic factors influencing prices globally.