Commodities Lead Market Rally: Top Performing ETFs This Week

Wall Street faced headwinds last week as major indices stumbled amid fresh geopolitical tensions. The S&P 500 slipped 0.4%, while the Dow Jones declined 0.5%, and Nasdaq Composite fell 0.1%. A standoff over tariffs—with threats ranging from 10-25% duties on select European nations and speculation of tariffs exceeding 200% on French goods—sent investors seeking refuge in traditional safe-haven assets. Against this backdrop of market uncertainty, commodity-linked exchange-traded funds emerged as the week’s best performing investment vehicles, with precious metals and energy sectors leading the charge.

Precious Metals Dominate: Safe-Haven Demand Fuels Gains

Bullion proved to be the ultimate flight-to-safety play. The SPDR Gold Trust (GLD) surged 8.4% as investors poured capital into the yellow metal seeking protection from geopolitical risks. But gold wasn’t alone in benefiting from safe-haven demand. Silver also attracted significant investor appetite, with the Sprott Silver Miners & Physical Silver ETF (SLVR) climbing 17.0%. The white metal benefited from heightened geopolitical risks, coupled with market expectations of potential U.S. interest rate cuts under a more dovish Federal Reserve stance. Strong retail buying in China and India added fuel to silver’s rally, while the physical market remained tight.

For investors seeking leverage to precious metal trends, gold mining stocks provided amplified exposure. The Global X Gold Explorers ETF (GOEX) surged 14.1% as mining stocks historically act as leveraged plays on the underlying commodity. Meanwhile, platinum extended its record rally with the GraniteShares Platinum Trust (PLTM) gaining 20.8%. Platinum benefited from a combination of strong investment demand, dollar weakness from rate-cut expectations, and persistent geopolitical tensions that bolstered its appeal as a precious metal safe haven.

Energy Shocks Drive Dramatic Surges

The most explosive gains came from the energy sector, as natural gas delivered the week’s most dramatic performance. The United States Natural Gas Fund LP (UNG) skyrocketed 35.2% as a historic winter storm swept across North America. The severe weather disrupted supply chains, shutting down approximately 10% of U.S. natural gas production while simultaneously spiking heating demand. Futures prices responded sharply to this supply crunch.

Rounding out the commodity winners was palladium, with the abrdn Physical Palladium Shares ETF (PALL) climbing 13.3%. Palladium prices reached their highest level in over three years as supply concerns intensified. Disruption fears related to potential Canada-China trade tensions weighed on North American metal flows, while strong investment inflows and robust trading activity in China provided underlying support despite softer automotive sector demand.

The Commodity Consensus

This week’s best performing ETFs shared a common thread: they all provided exposure to commodities and safe-haven assets during a period of market stress and geopolitical uncertainty. Whether through direct commodity exposure or leveraged plays on mining stocks, investors clearly sought refuge in tangible assets rather than equity risk. The convergence of winter weather shocks, trade tensions, and rate-cut expectations created ideal conditions for commodity strength across the board.