United States Commodity ETF (USCI Quick QuoteUSCI - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 31.55% from its 52-week low price of $58.51 per share.

Are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed.

USCI in Focus

The underlying SummerHaven Dynamic Commodity Index Total Return seeks to reflect the performance of a portfolio of 14 commodity futures. The product charges 111 bps in annual fees (See: All Broad Commodity ETFs).

Why the Move?

The commodity sector has been an area to watch lately, given the rise in commodity prices and increasing inflation expectations. Increase in safe-haven demand, persistent geopolitical tensions and estimations of a September interest rate cut by the Fed are driving gold prices. Coffee prices have also spiked due to U.S. tariffs.

Additionally, with consumers’ 12-month inflation expectations rising and Powell highlighting inflation concerns at Jackson Hole last Friday, commodities stand out as an attractive inflation hedge.

More Gains Ahead?

USCI might continue its strong performance in the near term, with a positive weighted alpha of 25.44 (per Barchart.com), which gives cues of another rally.