The commodity boom came to an end last week as Chinese demand cooled and the Federal Reserve's tough rhetoric prompted investors to take advantage of recent price surges to make a profit.

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

Jonathan Krinsky (Jonathan Krinsky), chief market technician at BTIG, said: “We have reason to believe that the re-inflation deal still has more room to operate.”

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

Klinsky pointed out that the recent outstanding performance of silver compared to gold shows that “the precious metals bull market is strong and healthy.” He is still bullish on the market and believes that gold has yet to reach its final high, and “there is no sign in the gold price chart that the peak has arrived.” he said.

So far this year, the price of gold futures has risen 12%, while the price of silver has risen 27%.

Meanwhile, copper prices surpassed $11,000 per ton for the first time last week, and the performance so far this year has been superior to silver and gold. Investors are enthusiastic about copper as they are betting that copper will play a key role in the transition to renewable energy and electric vehicles and the construction of artificial intelligence data centers.

John LaForge (John LaForge), head of physical asset strategy at Wells Fargo, said: “The commodity supercycle began four years ago... and is likely to continue strong performance for six to ten years.”

This bullish sentiment appears to be slowly heating up on Wall Street.

Michael Widmer (Michael Widmer), head of metals research at Bank of America, said copper is “very strong” from a fundamental point of view, and investors should use any consolidation as a buying opportunity.

“I think the structural bull market in the copper market still exists,” Widmer said. “It's definitely a bargain market.”

Widmer and his team predict that by 2025, copper prices will rise more than 25% from current levels to an average of $12,000 per tonne.

For investors who want to enter the market and are bullish on metals, Bank of America will choose Antofagasta (ANTO.L),$Freeport-McMoRan (FCX.US)$und$Teck Resources (TECK.US)$Listed as its preferred copper concept stock, and at the same time$Franco-Nevada (FNV.US)$und$Wheaton Precious Metals (WPM.US)$As its recommended way to invest in gold.

Editor/Somer