Gold remains an essential investment for portfolio companies! AI and green transformation are creating even greater opportunities in commodities.
2026-07-11 01:31:09
FTSE Russell's research department points out that gold remains an indispensable ballast in investment portfolios amidst increased macroeconomic volatility. However, for commodity investors seeking long-term excess returns, broader investment opportunities are emerging in areas such as artificial intelligence and metals related to the global energy transition.
In an interview with Kick News, Indrane De, Global Head of Investment Research at FTSE Russell, stated that the core investment logic for gold has not fundamentally changed. On the one hand, continued gold purchases by central banks, geopolitical instability, and the global trend of de-dollarization continue to provide long-term support for gold prices; however, on the other hand, the Federal Reserve's maintenance of a tight monetary policy and the continuous rise in real interest rates are constantly offsetting the upward momentum of gold.
“Gold is currently in a situation where positive and negative factors are balancing each other out,” Indrane De explained. “As a traditional inflation hedge and safe-haven asset, the de-dollarization process and central bank gold purchases continue to empower gold, but rising real yields have created significant upward resistance.”
Multiple factors interact and balance each other, causing gold prices to tend towards equilibrium. Nevertheless, the industry remains firmly optimistic about gold's strategic allocation value, believing it to be a core target for asset diversification.
Green energy transformation and upgrading reshapes the investment logic of commodities.
Indrane De believes that the commodity market is now entering a new long-term development phase, with two core structural trends dominating the industry landscape: the iteration of the artificial intelligence industry and the transformation of global energy security, bringing new driving forces to commodity prices.
Geopolitical conflicts in the Middle East have driven up oil prices, but more profoundly, they have reshaped the investment logic for global new energy. Energy transition is no longer simply limited to environmental protection; it has risen to become a core strategy for countries to safeguard national security and enhance economic competitiveness.
"The Strait of Hormuz crisis has made the world realize that energy security is economic security," said Indrane De. In the short term, countries will do their best to tap the potential of fossil fuel supply, but in the long term, this energy crisis will further accelerate the global green transition.
A recent study by FTSE Russell indicates that the conflict in Iran has not merely led to a short-term surge in demand for fossil fuels, but rather has accelerated the global transition towards electrification, renewable energy, and domestically produced energy. To reduce dependence on imported oil and gas, countries are continuously increasing investment in photovoltaics, energy storage batteries, new energy vehicles, power grid infrastructure, and energy-saving technologies.
Currently, global investment in clean energy is about twice that of fossil fuel investment. The continued decline in the cost of photovoltaic modules and power batteries has significantly improved the economic efficiency of the electrification industry. At the same time, new energy vehicles are gradually replacing traditional gasoline vehicles, continuously squeezing global crude oil consumption, and geopolitical crises are further accelerating this already steadily progressing energy transformation trend.
The benefits of transformation continue to be released, bringing long-term positive prospects to industrial metals.
Two major structural benefits have been realized in the financial markets. Data shows that the FTSE Environmental Opportunities Index has performed exceptionally well this year, outperforming the FTSE Global Index by nearly 8.5 percentage points so far, fully demonstrating the long-term industrial benefits brought about by green transformation.
FTSE Russell's latest quarterly outlook report lists energy transition-related companies as the investment theme with the highest certainty. Environmental stocks have continued to outperform the global market this year, while companies involved in the mining and refining of transitioning metals are poised for significant earnings growth as countries accelerate their new energy infrastructure development.
Market investment continues to shift towards industrial metals. The dual development trends of green electrification and artificial intelligence have significantly increased the strategic demand for industrial metals. Among them, core industrial metals such as copper and silver are deeply intertwined with the global electrification process, have a solid long-term upward trend, and are expected to continue to benefit from industry transformation.
Besides the green transformation, the massive investment in artificial intelligence infrastructure has become another core growth driver for commodity demand. According to FTSE Russell estimates, the five major US cloud computing giants will invest over $600 billion in AI infrastructure this year, and the annual investment is expected to exceed $900 billion by 2028. This massive infrastructure investment will continue to drive the development of industries such as chips, electrical equipment, and data centers, thereby stimulating rigid demand for various supporting industrial metals.
Gold's safe-haven properties remain strong, making it a core asset for asset defense.
While optimism about the long-term opportunities in industrial commodities, Indrane De emphasizes that gold's unique defensive value in a diversified investment portfolio is irreplaceable.
The ongoing escalation of geopolitical risks in the Middle East, the implementation of new monetary policy by the new Federal Reserve Chairman Kevin Warsh, and increased volatility in the interest rate market, combined with these multiple uncertainties, have ensured continued demand for gold as a safe-haven asset. The market currently faces three main sources of volatility: geopolitical risks, fluctuating inflation expectations, and uncertainty surrounding the Federal Reserve's policy framework.
It is worth noting that the market generally anticipates that after the situation in the Strait of Hormuz eases, the global market will quickly return to normal. This optimistic expectation may be overpriced, and may instead harbor greater volatility risks.
For gold investors, a clear balance of power has emerged in the market: rising real interest rates and increased opportunity costs of holding positions in the short term will suppress the upside potential of gold; however, in the medium to long term, continued geopolitical instability, normalized central bank gold purchases, and the trend of global foreign exchange reserve diversification will continue to solidify gold's status as a core monetary asset, making it an indispensable defensive asset in investment portfolios.
In an interview with Kick News, Indrane De, Global Head of Investment Research at FTSE Russell, stated that the core investment logic for gold has not fundamentally changed. On the one hand, continued gold purchases by central banks, geopolitical instability, and the global trend of de-dollarization continue to provide long-term support for gold prices; however, on the other hand, the Federal Reserve's maintenance of a tight monetary policy and the continuous rise in real interest rates are constantly offsetting the upward momentum of gold.
“Gold is currently in a situation where positive and negative factors are balancing each other out,” Indrane De explained. “As a traditional inflation hedge and safe-haven asset, the de-dollarization process and central bank gold purchases continue to empower gold, but rising real yields have created significant upward resistance.”
Multiple factors interact and balance each other, causing gold prices to tend towards equilibrium. Nevertheless, the industry remains firmly optimistic about gold's strategic allocation value, believing it to be a core target for asset diversification.
Green energy transformation and upgrading reshapes the investment logic of commodities.
Indrane De believes that the commodity market is now entering a new long-term development phase, with two core structural trends dominating the industry landscape: the iteration of the artificial intelligence industry and the transformation of global energy security, bringing new driving forces to commodity prices.
Geopolitical conflicts in the Middle East have driven up oil prices, but more profoundly, they have reshaped the investment logic for global new energy. Energy transition is no longer simply limited to environmental protection; it has risen to become a core strategy for countries to safeguard national security and enhance economic competitiveness.
"The Strait of Hormuz crisis has made the world realize that energy security is economic security," said Indrane De. In the short term, countries will do their best to tap the potential of fossil fuel supply, but in the long term, this energy crisis will further accelerate the global green transition.
A recent study by FTSE Russell indicates that the conflict in Iran has not merely led to a short-term surge in demand for fossil fuels, but rather has accelerated the global transition towards electrification, renewable energy, and domestically produced energy. To reduce dependence on imported oil and gas, countries are continuously increasing investment in photovoltaics, energy storage batteries, new energy vehicles, power grid infrastructure, and energy-saving technologies.
Currently, global investment in clean energy is about twice that of fossil fuel investment. The continued decline in the cost of photovoltaic modules and power batteries has significantly improved the economic efficiency of the electrification industry. At the same time, new energy vehicles are gradually replacing traditional gasoline vehicles, continuously squeezing global crude oil consumption, and geopolitical crises are further accelerating this already steadily progressing energy transformation trend.
The benefits of transformation continue to be released, bringing long-term positive prospects to industrial metals.
Two major structural benefits have been realized in the financial markets. Data shows that the FTSE Environmental Opportunities Index has performed exceptionally well this year, outperforming the FTSE Global Index by nearly 8.5 percentage points so far, fully demonstrating the long-term industrial benefits brought about by green transformation.
FTSE Russell's latest quarterly outlook report lists energy transition-related companies as the investment theme with the highest certainty. Environmental stocks have continued to outperform the global market this year, while companies involved in the mining and refining of transitioning metals are poised for significant earnings growth as countries accelerate their new energy infrastructure development.
Market investment continues to shift towards industrial metals. The dual development trends of green electrification and artificial intelligence have significantly increased the strategic demand for industrial metals. Among them, core industrial metals such as copper and silver are deeply intertwined with the global electrification process, have a solid long-term upward trend, and are expected to continue to benefit from industry transformation.
Besides the green transformation, the massive investment in artificial intelligence infrastructure has become another core growth driver for commodity demand. According to FTSE Russell estimates, the five major US cloud computing giants will invest over $600 billion in AI infrastructure this year, and the annual investment is expected to exceed $900 billion by 2028. This massive infrastructure investment will continue to drive the development of industries such as chips, electrical equipment, and data centers, thereby stimulating rigid demand for various supporting industrial metals.
Gold's safe-haven properties remain strong, making it a core asset for asset defense.
While optimism about the long-term opportunities in industrial commodities, Indrane De emphasizes that gold's unique defensive value in a diversified investment portfolio is irreplaceable.
The ongoing escalation of geopolitical risks in the Middle East, the implementation of new monetary policy by the new Federal Reserve Chairman Kevin Warsh, and increased volatility in the interest rate market, combined with these multiple uncertainties, have ensured continued demand for gold as a safe-haven asset. The market currently faces three main sources of volatility: geopolitical risks, fluctuating inflation expectations, and uncertainty surrounding the Federal Reserve's policy framework.
It is worth noting that the market generally anticipates that after the situation in the Strait of Hormuz eases, the global market will quickly return to normal. This optimistic expectation may be overpriced, and may instead harbor greater volatility risks.
For gold investors, a clear balance of power has emerged in the market: rising real interest rates and increased opportunity costs of holding positions in the short term will suppress the upside potential of gold; however, in the medium to long term, continued geopolitical instability, normalized central bank gold purchases, and the trend of global foreign exchange reserve diversification will continue to solidify gold's status as a core monetary asset, making it an indispensable defensive asset in investment portfolios.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
