There may be even more pots of gold at the end of this market rainbow.
Rising commodity prices took a breather this week as investors sought to profit from recent price gains following weakening demand from China and hawkish rhetoric from the Federal Reserve.
But despite the recent sell-off, Wall Street experts remain focused on the commodity's long-term prospects, telling Yahoo Finance that they are confident the fundamentals remain strong and the record rally will resume.
“There is reason to believe that the 'great reflation trade' has room to develop further,” Jonathan Krinsky, chief market technologist at BTIG, told Yahoo Finance.
Krinsky points out that silver's recent performance against gold is evidence that “the bull market in precious metals is strong and healthy.” He remains bullish and believes gold has yet to reach its final high, noting that “there is nothing on the gold price chart to suggest that the final high has been reached.”
So far this year, gold futures are up 12%, while silver is up 27%.
And copper, which has outperformed both silver and gold in 2024, surpassed $11,000 a ton for the first time this week. The metal has become popular among investors as they believe it will play a pivotal role in the shift to renewable energy and electric vehicles, as well as the expansion of AI-powered data centers.
“The commodities supercycle that began four years ago has become a reality and will continue to perform extremely well over the next six to 10 years,” said John LaForge, head of real asset strategy at Wells Fargo.
This bullish sentiment appears to be gaining momentum on Wall Street.
Michael Widmer, head of metals research at Bank of America, told Yahoo Finance that copper looks “very strong” on a fundamental basis and that investors should use any consolidation as a buying opportunity.
“I think the structural bull market in copper remains strong,” Widmer said. “This is definitely a buy-low market.”
Widmer and his team expect copper prices to rise more than 25% from current levels in 2025, reaching an average of $12,000 a ton.
For investors looking to jump on the metals bull market, Bank of America named Antofagasta (ANTO.L), Freeport-McMoRan (FCX) and Teck Resources (TECK) as its top copper picks, while Franco-Nevada (FNV) and Wheaton Precious (WPM) were its gold picks.
US economic growth also continues to support demand for commodities. Matthew Ruzzetti, Chief US Economist at Deutsche Bank, discusses the economic outlook in the latest episode of the Opening Bid podcast. Listen below.
Sheena Smith Anchor for Yahoo Finance. Follow Smith on Twitter translatorHave a tip on a deal, merger, activist situation or anything else? Email me at seanasmith@yahooinc.com.
For in-depth analysis of the latest stock market news and events that are moving stock prices, click here..
Read the latest financial and business news from Yahoo Finance
