tigerofdragon| Wall Street is increasingly convinced of one thing: the rally in gold, silver and copper is not over!

Source: Dingyu Information

Bullishness on commodities seems to be heating on Wall StreettigerofdragonAnalysts believe that gold, silver and copper are far from reaching their peak.

The commodities boom paused last week as cooling demand in China and tough rhetoric from the Federal Reserve prompted investors to take advantage of recent price surges to take profits.

However, despite the recent decline in commodity prices, Wall Street professionals are increasingly optimistic about the long-term prospects of commodities, saying that commodity fundamentals remain strong and they believe record gains will resume.

"We have reason to believe that there is more room for re-inflation trading," said Jonathan Krinsky, chief market technician at BTIG.

Re-inflation trading means that the market judges inflation expectations and adjusts its trading behavior according to the central bank's re-inflation policy. This trading behavior may make inflation more serious.

Klinsky pointed out that the recent outstanding performance of silver relative to gold suggests that "the precious metals bull market is strong and healthy." He remains bullish on the market and believes that gold has not yet reached its final high,"there is no indication in the gold price chart that a peak has arrived." he said.

So far this year, gold futures prices have risen 12%, while silver prices have risen 27%.

At the same time, copper prices topped $11000 a tonne for the first time last week, outperforming silver and gold so far this year. Investors are enthusiastic about copper as they bet it will play a key role in the transition to renewable energy and electric vehicles, as well as in the construction of artificial intelligence data centers.

John LaForge, head of real asset strategy at Wells Fargo, said: "The commodity supercycle began four years ago... and is likely to continue to be strong for another six to ten years."

That bullish sentiment seems to be heating up on Wall Street.

Michael Widmer, head of metals research at Bank of America, said copper is "very strong" in fundamentals and investors should use any consolidation as a buying opportunity.

"I think there is still a structural bull market in the copper market," Widmer said. "This is definitely a bargain hunting market."

Widmer and his team predict that by 2025, copper prices will rise more than 25% from current levels to an average of $12000 per ton.

For investors who want to enter the market and be bullish on metals, Bank of America will invest ANTOtigerofdragon.L), Freeport McMoran (FCX) and Tektronix Resources (TECK) are listed as its preferred copper concept stocks, while Franco Nevada (FNV) and Wheaton Precious (WPM) are among its recommended gold investment methods.

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