The recent pullback across commodities should be seen as a healthy phase of profit-taking rather than the end of the bull market, with different sectors continuing to be supported by distinct fundamental drivers, according to Jonathan Barratt, Chief Investment Officer at ETO Markets.
Barratt said the correction follows a very strong start to 2026, during which several commodities hit fresh all-time highs, and has been partly influenced by rebalancing within the Bloomberg Commodity Index. However, he said that commodities should not be viewed as a single, uniform trade. “Each sector by itself certainly has its own place,” he said, adding that this diversity is likely to keep commodity indices “relatively stable if not moving higher” even as individual sectors move at different speeds.
Among precious metals, Barratt described the space as a “terrific trade” over the past year but said some consolidation is now necessary after sharp gains. He has taken partial profits and expects volatility in the near term. “We feel that there is time for a little bit of correction, which should be quite volatile, but I don’t think the trend is yet over for the precious metals,” he said, stating that a market “clean out” would help reset positioning before the broader uptrend resumes.
Silver remains his most bullish long-term conviction within precious metals, despite its strong performance. Barratt said he is waiting for a deeper pullback and a confirmed low before re-entering long positions, identifying a possible support zone around $72–72.5. While short-term weakness is possible, he remains constructive due to an ongoing supply deficit and supportive macro conditions. Over the course of the year, he believes silver could break past $82.50 and potentially move towards $100 an ounce, helped by a dovish monetary stance from China.
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On gold, Barratt prefers a more measured advance rather than sharp, speculative moves. He expects a period of consolidation following the strong rally at the end of 2025, even as the broader macro backdrop remains supportive. While central-bank buying has eased slightly, he said the political and economic environment in the US continues to underpin the metal. Once the market stabilises, he sees a longer-term path towards $4,800 an ounce.
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Barratt also addressed the recent pullback in base metals such as copper and aluminium, which had touched record and multi-year highs earlier. He characterised the decline as a healthy correction rather than a change in trend. The outlook for copper, in particular, remains positive due to persistent supply deficits and strong demand linked to China’s transition towards a greener economy. The key driver for base metals, he said, is policy support from China. “The People’s Bank of China is coming out there, being quite vocal about what it wants to do in terms of interest rates…and cutting ratios to really support the liquidity into the market, and I think that’s going to support those base metals,” Barratt said.
For the entire interview, watch the accompanying video