Commodities Daily Update

General Commodity ETFs

Broad commodity ETFs advanced over the past day, supported primarily by rising energy and industrial-metal prices. The Invesco DB Commodity Index Tracking Fund (DBC) gained 1.6%, the iShares GSCI Commodity Dynamic Roll Strategy ETF (COMT) rose 1.5%, and the Invesco Diversified Commodity Strategy ETF (PDBC) added 1.5%. PDBC attracted approximately $34.3 million in daily inflows, while DBC added $20.8 million. Broad natural-resource equity funds also moved higher, including GUNR and GNR, up 0.8% and 0.8%, respectively, although materials-sector ETFs weakened, with XLB falling 1.0% alongside an $89.2 million outflow. Agriculture was mixed: wheat gained 1.8%, soybeans rose 0.6%, and corn declined 0.5%.

Oil & Gas ETFs

Oil-linked ETFs led the commodity market as crude prices continued to climb. The United States Oil Fund (USO) gained 2.9%, the Invesco DB Oil Fund (DBO) rose 2.9%, and the United States Brent Oil Fund (BNO) advanced 2.9%. Leveraged crude exposure produced stronger gains, with UCO up 4.3%, while the inverse SCO fund declined 3.9%. USO recorded a substantial $128.0 million daily inflow, although DBO and BNO experienced outflows of $4.6 million and $8.4 million, respectively. Energy equities also participated: XOP rose 1.7%, IEO gained 1.5%, and XLE advanced 1.1%, while oil-services fund OIH added just 0.2%. Natural-gas products lagged, with UNG down 0.9% and leveraged BOIL falling 1.8%; inverse natural-gas fund KOLD gained 1.7%.

Metals and Miners

Precious-metal ETFs declined, while industrial metals and base-metal miners outperformed. Major gold funds GLD and IAU each fell approximately 1.7%, while silver funds SLV and SIVR lost about 0.8%. Palladium was the weakest physical metal, with PALL declining 3.5%, whereas platinum slipped only 0.2%. GLD experienced approximately $202.5 million in daily outflows, although the broader GLTR precious-metals basket attracted $10.1 million. Gold and silver miners followed bullion lower: GDX declined 0.9%, GDXJ fell 1.2%, and SIL lost 0.8%. Industrial metals were considerably stronger, with copper fund CPER gaining 1.6%, base-metals fund DBB rising 1.2%, and rare-earth fund REMX advancing 1.4%. Copper and diversified mining equities led the group—COPX surged 4.1%, PICK gained 1.6%, SETM rose 1.6%, and XME added 1.1%. Uranium also strengthened, with URA gaining 3.1% and URNM advancing 0.5%. Overall, ETF performance showed a clear rotation away from precious metals and toward crude oil, copper, uranium and base-metal producers.

General Commodities

Commodity markets were shaped by escalating geopolitical tensions in the Middle East, tightening petroleum supplies and a modestly weaker U.S. dollar. Renewed attacks around the Strait of Hormuz, Iran’s Kharg Island and Jordan disrupted regional shipping, with commodity-vessel traffic through the strait falling to six ships—below its recent 10-day average. Oil and refined products extended their gains, while precious metals recovered in early trading after declining Tuesday. Industrial metals were mixed following copper’s recent record-setting performance. Broader risk sentiment remained cautious, with U.S. equity futures lower and the VIX rising as investors awaited U.S. inflation data, energy inventory reports and updated forecasts from the EIA, OPEC and IEA.

Oil & Gas

Oil prices extended Tuesday’s advance as attacks on tankers and energy infrastructure intensified concerns about supplies moving through the Persian Gulf. After closing 1.7% higher at $93.03, October WTI added another 2.8% to $95.60, while November Brent rose 3.1% to $100.93 after settling above $97 Tuesday. ULSD jumped 3.8% to $4.742 amid warnings that the global diesel shortage could keep product prices elevated, while RBOB gained 1.0% to $3.285. The rally followed U.S. strikes against Iranian targets at Kharg Island, attacks on vessels near Oman and a Ukrainian strike on Russia’s Novorossiysk oil terminal. Supporting the supply concerns, surveyed OPEC+ production declined by 780,000 barrels per day in August. However, the demand outlook weakened after Sinopec projected Chinese oil consumption would fall by 600,000 barrels per day, or 8.9%, in 2026. Natural gas moved in the opposite direction, declining 1.6% to $2.868 as cooler U.S. weather forecasts pressured demand expectations, although European TTF gas climbed 3.5% to a multiyear high amid shipping disruptions and below-average storage.

• Oil & Gas:
  • Pricing
    • WTI +2.8% to $95.60 (Oct)
    • Brent +3.1% to $100.93 (Nov)
    • Natural gas (1.6%) to $2.868 (Oct)
    • RBOB +1.0% to $3.285 (Oct)
    • ULSD +3.8% to $4.742 (Oct)

Metals and Miners

Precious metals rebounded as geopolitical risk and a 0.14% decline in the U.S. Dollar Index supported defensive demand. Gold rose 0.28% to $4,451.50 per ounce and silver gained 0.15% to $67.10 after falling 1.5% and 0.6%, respectively, during Tuesday’s session. Industrial metals were mixed: copper declined 0.99% to $6.756 per pound following its recent record highs, zinc fell 1.13% to $4,110 per metric ton, and aluminum and nickel each advanced 0.45%. Mining shares reflected the split between metals categories. Gold-mining ETFs were unchanged in early trading after the VanEck Gold Miners ETF and Junior Gold Miners ETF lost 0.9% and 1.2% Tuesday, while Agnico Eagle and Newmont gained 3.9% and 1.4% premarket. Copper miners had outperformed in the prior session, led by Freeport-McMoRan’s 5.4% gain and Southern Copper’s 4.9% advance, although Freeport eased 0.2% premarket as copper prices pulled back. Company developments included Eldorado Gold producing its first copper-gold concentrate at the Skouries project and several miners reporting updated project economics, drilling results and resource estimates.

• Metals Pricing:
  • Gold +0.28% to $4451.5/oz, Monthly +1.18%, YTD +2.54%:
  • Silver +0.15% to $67.1/oz, Monthly +5.67%, YTD (4.96)%:
  • Copper (0.99)% to $6.756/lb, Monthly +2.5%, YTD +18.9%:
  • Aluminum +0.45% to $3325/mt, Monthly +0%, YTD +0%:
  • Nickel +0.45% to $16675/mt, Monthly +0%, YTD +0%:
  • Zinc (1.13)% to $4110/mt, Monthly +0%, YTD +0%:
  • VanEck Gold Miners ETF +0% to $98.41, Monthly +9.48%, YTD +14.74%:
  • VanEck Junior Gold Miners ETF +0% to $127.54, Monthly +8.43%, YTD +12.09%:
  • US Dollar (0.14)% to $98.646, Monthly (0.9)%, YTD +0.33%:
  • CBOE Volatility Index +1.93% to $16.95, Monthly (0.24)%, YTD +2.53%: