Gold Retains Portfolio Role but AI and Green Shift Offer Bigger Commodity Opportunities – FTSE Russell

Gold continues to serve as a key portfolio anchor thanks to central bank buying, geopolitical risks and de-dollarization. Yet Indrani De of FTSE Russell notes that rising real yields from the Fed create an offsetting headwind, leaving the metal in a balanced position. She said: "Gold really has this one tailwind and one headwind."

De sees stronger long-term opportunities in commodities tied to artificial intelligence and the energy transition. Middle East tensions have highlighted energy security, accelerating renewable investments where clean energy spending already runs at twice the level of fossil fuels.

The FTSE Environmental Opportunities Index has outperformed the FTSE All-World by 8.5 percentage points year-to-date. Five major US hyperscalers are set to spend over $600 billion on AI infrastructure this year, rising above $900 billion by 2028, supporting demand for copper and silver. Still, gold remains essential for hedging volatility.