UBS Strategist Sees Commodity Upcycle on Electrification, AI Demand

August 31, 2026 at 12:00 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

UBS strategist Sagar Khandelwal urged clients to position for a commodity upcycle, citing electrification, AI infrastructure spending, and supply constraints. He said commodities can protect portfolios against inflation and energy disruptions. The call follows Jeff Currie's similar bullish outlook.

Key Facts

UBS strategist Sagar Khandelwal urged clients to position for a commodity upcycle.
Khandelwal cited electrification, surging power demand, AI infrastructure spending, supply constraints, and underinvestment as drivers.
He recommended diversified exposure across precious metals, energy, industrial metals, and agriculture.
UBS remains constructive on gold prices over the next 12 months.
The call follows Jeff Currie's advice to 'get long and buckle up' for the commodities rally.

The Bullish Call

UBS strategist Sagar Khandelwal issued a bullish call on commodities, urging clients to 'position for a commodity upcycle.' He said electrification, surging power demand, AI infrastructure spending, persistent supply constraints, and years of underinvestment are converging to create a sustained upcycle in hard assets. Khandelwal argued commodities can generate returns while protecting portfolios against energy disruptions and renewed inflation. The call came one day after veteran commodities strategist Jeff Currie told investors to 'get long and buckle up' for the next leg of the commodities rally.

Gold Outlook

Gold has resumed its upward trend as US inflation concerns have ebbed and markets have reined in expectations for near-term Federal Reserve rate hikes. UBS believes central bank demand, continued diversification away from the US dollar, and global debt concerns will remain important structural supports for gold. The bank remains constructive on gold prices over the next 12 months and views gold as a useful strategic diversifier. For investors with substantial gains after the strong rally over the past year, higher prices may provide an opportunity to rebalance some exposure into other commodity sectors.

Energy and Industrial Metals

The ongoing conflict between the US and Iran highlights the fluid nature of geopolitical events and their impact on energy markets. With crude supply remaining restricted and both sides facing constraints in reaching a compromise, uncertainty over shipping conditions and production normalization is likely to keep energy markets sensitive. UBS said energy exposure can help protect against lingering supply uncertainty and inflation spillovers, while robust demand supports a constructive medium-term outlook. Industrial metals such as copper have benefited from secular demand drivers including electrification, the energy transition, and the global buildout of AI infrastructure.