Three and a half years after Russia’s full-scale invasion of Ukraine sent shockwaves through global markets, commodity prices have largely reset.
- GLD ETF is trading near record highs. Check live prices here.
Back in late February 2022, right as the war broke out, prices for everything from oil to wheat exploded.
The Invesco DB Commodity Index Tracking Fund (NYSE:DBC)—which tracks 14 key physical commodities—rallied 15.1% in just one week, its biggest move since launching in 2006.
From December 2021 through June 2022, it beat the U.S. stock market – tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY) – every month, racking up a 65% outperformance.
That surge came as the global economy exited the pandemic with pent-up demand, massive stimulus, and limited supply, particularly across energy and agricultural sectors.
The war in Ukraine only worsened supply constraints and added a geopolitical premium that traders rushed to price in.
But in commodities, high prices often cure high prices.
Energy Panic Of 2022 Is Over
Crude oil, tracked by the United States Oil Fund (NYSE:USO), hit $130 a barrel in March 2022—levels unseen …