The commodity market may be taking a breather, but experts believe there are still more pots of gold at the end of this rainbow. Despite recent declines, Wall Street pros remain focused on the long-term story in commodities, confident that the record-setting rally will resume.
Jonathan Krinsky, BTIG’s chief market technician, points to the recent outperformance of silver relative to gold as a sign of a strong precious metal bull market. He remains bullish on gold, stating that there is nothing in the price chart to suggest a final top.
Gold futures have seen a 12% jump this year, while silver has gained 27%. Copper, on the other hand, hit a new milestone this week by surpassing $11,000 a ton for the first time ever. Investors are betting on copper’s role in the transition to renewables and EVs, as well as data center buildouts due to AI.
Wells Fargo’s head of real asset strategy, John LaForge, believes that the commodity supercycle still has plenty of room to run. Bank of America’s head of metals research, Michael Widmer, sees copper as a strong buy on a fundamental basis, predicting a rally of more than 25% to reach an average of $12,000 per ton in 2025.
For investors looking to capitalize on the bullish calls on metals, Bank of America recommends Antofagasta, Freeport-McMoRan, and Teck Resources for copper, and Franco Nevada and Wheaton Precious for gold. Economic growth in the US also remains supportive of commodities demand, making this an exciting time for investors in the market.
