UBS House View Briefcase

Latest edition · August 27, 2026

What's next for commodities en 1665613

UBS maintains a positive view on broad commodities, driven by structural support for industrial metals from AI and electrification, supply risks in agriculture, and persistent geopolitical tensions in energy markets. Active management is recommended to navigate leadership rotation and elevated volatility.

Despite energy market volatility stemming from ongoing Middle East tensions and sanctions, UBS argues that the fundamental case for commodities extends across the complex. AI infrastructure and electrification support industrial metals like copper, while El Niño risks and export disruptions tighten agricultural supplies. With gold providing strategic diversification, UBS favors an actively managed, diversified commodity allocation to optimize return potential and portfolio resilience against inflation.

Key takeaways from the latest edition

• 1.Broad commodity exposure remains attractive beyond energy as both an inflation hedge and a source of portfolio diversification.
• 2.Industrial metals benefit from AI and electrification, while agricultural commodities show upside potential from El Niño risks and gold serves as a strategic diversifier.
• 3.Active management is favored over passive allocation due to expected rotation across commodities driven by geopolitics, inventories, and demand shifts.

What this series covers

• Key message
• 01 Continued Middle East tensions are impacting energy markets.
• 02 But fundamentals are supportive for broad commodities.
• 03 So, we continue to favor commodities, with a focus on active management.
• New this week
• One liner
• Did you know?
• Investment view
• Non-Traditional Assets
• Disclaimer

Edition archive

• What's next for commodities en 1665613

  August 27, 2026

• Why should investors broaden beyond US stocks en 1664921

  August 17, 2026

• How to diversify with alternatives en 1664883

  August 17, 2026

• How can investors find income en 1664943

  August 17, 2026

• What does the Warsh era mean for Fed policy en 1664945

  August 17, 2026

• Should investors worry about private credit en 1664881

  August 17, 2026