Industrial Metals Surge on AI and Clean Energy Demand, Outperforming Gold

Lithium, copper, aluminum, and steel have matched gold's performance this year, fueled by robust demand rather than fear-driven buying. The rally stems from AI infrastructure expansion and the global energy transition, with copper leading the pack at a 34% year-to-date gain. Steel followed closely at 27%, while lithium and aluminum ROSE 30% and 14%, respectively.

Supply disruptions intensified price pressures. Copper faced mine closures in Congo, Chile, and Indonesia, while China's temporary shutdown of a major CATL lithium site sent shockwaves through markets. Aluminum and steel producers grappled with energy cost spikes from both the Ukraine conflict and AI's voracious electricity consumption.

"We're transitioning from a fossil-fuel economy to one powered by metal-intensive technologies," said Jim Wiederhold, Bloomberg's commodity index product manager. The statement underscores a fundamental shift—industrial metals are becoming the new backbone of technological progress.