Summary

• AI capex, combined with rising global expenditures on defense and energy security, is reinforcing demand for commodities.
• The buildout of AI infrastructure - particularly data centers - is highly resource-intensive. Demand for inputs such as copper and rare earths is rising into a constrained supply.
• Rising global expenditure on defense and energy security continues to support sustained demand for key minerals and industrial metals.

By Magdalena Ocampo, Market Strategist

Last week’s inflation report and expectations of a U.S.-Iran agreement have eased inflation concerns. However, the inflation outlook is not defined by oil dynamics alone.

AI capex, combined with rising global