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 has moved up 45.58% from its 52-week low price of $64.26 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 116 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 prices. The Middle East conflict has resulted in the closure of the Strait of Hormuz and there are concerns around supply disruptions, which have increased oil prices. Prolonged tensions in the Middle East could lead to increased volatility surrounding supply and a further surge in oil prices.

Additionally, gold prices are rising as investors seek safe-haven assets amid the uncertainty.

More Gains Ahead?

USCI might continue its strong performance in the near term, with a positive weighted alpha of 39.59 (per Barchart.com), which gives cues of another rally.