Shannon Stapleton/Reuters
2025-09-04T10:10:02Z
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As market volatility persists, Wells Fargo is bullish on two parts of the commodity sector.
The firm says precious and industrial metals have been effective diversifiers in 2025.
It cites upcoming interest-rate cuts and a continued weak dollar as drivers of more gains.
Through most of 2025, investors have searched for ways to withstand the economic impact of President Donald Trump’s tariffs.
Stocks, bonds, currencies, and crypto whipsawed with each latest trade-war development, creating a difficult storm to weather. But the Wells Fargo Investment Institute says commodities — specifically metals — have been a rare steady presence.
The firm is referring to both precious and industrial metals, whose outperformance is shown in the chart below:
Wells Fargo Investment Institute
And Wells Fargo thinks the outperformance in both types of metals can continue, driven by the Fed’s upcoming interest rate cut(s) and a continued weak US dollar.
For industrial metals specifically, the firm cites a modest economic recovery in 2026, as well as continued stimulus measures in China. It also says that, given a recent pullback in prices, now is an ideal time to gain sector exposure.
As for precious metals, the Wells Fargo strategists said: “we expect ongoing gold purchases by global central banks and heightened geopolitical strife to support demand growth.”
Get the latest Gold price here.