In recent weeks, commodities and the exchange-traded funds that track their prices have experienced a significant resurgence, with oil and precious metals leading the charge.

Geopolitical tensions, including conflicts in the Middle East and related concerns over potential supply chain disruptions, have fueled sharp price increases in energy markets.

Oil’s resurgence is also due to the extension of production cuts by OPEC+ nations, while precious metals like gold and silver are benefiting from investor demand for safe-haven assets amid inflation concerns and wider uncertainty following last week’s hot jobs reports.

This resurgence has boosted commodities ETFs, such as the United States Oil Fund (USO) , SPDR Gold Shares (GLD) , and the iShares Silver Trust (SLV) , as investors look to capitalize on their respective benchmark’s price movements.

Through Oct. 3, USO and GLD have each gained more than 6% in the past four weeks, doubling the 3% gain for the stock proxy SPDR S&P 500 ETF Trust (SPY) , while SLV has more than tripled that with a 14% gain.

The price gains in commodities ETFs highlight their role as both inflation hedges and crucial assets during periods of market volatility.

Commodities ETFs: Factors Contributing to Surging Prices

Commodities have been performing well lately due to a mix of economic, geopolitical, and supply-demand factors: