COMMODITY OUTLOOK - Base Metals Approach Important Highs - Precious Metals Maintaining Uptrend - Energy Forming Lows

In This Edition: This month’s report takes an inquisitive look at the upside progress of the Base Metals. Back in late-May/early-June, new ‘buy’ signals were generated for Copper, Lead, Zinc and Nickel as each ended multi-month counter-trend declines. Prices have traded higher since with impressive gains in Copper of +20%, Lead +24%, Zinc +29% and Nickel +27% per cent. Into those lows, Elliott Wave patterns were synchronised which generated the bullish forecasts. Since then, some of the upside targets have been reached, others not, so how do the patterns reconcile these differences – we intend to find out!

Precious metals have resumed larger uptrends from their July lows, Gold and Silver in particular, but can these last? Inflation remains subdued and the US$ dollar has begun a rebound higher providing short-term headwinds. But is the 2nd phase of the ‘INFLATION-POP’ set to surge prices higher? Relative to bullion, the gold and silver miners have underperformed so we thought to take an in-depth look at these to determine if they offer some insight to the overall progress of price development.

SPOTLIGHT: This report includes updates for the GDX and XAU indices, but also examines the wave and pattern progress of Newmont Mining (NEM), GoldCorp. (GG), American Barrick (ABX), AngloGold Ashanti (AU) and Agnico Eagle (AM). Preferential and alternate counts are compared indicating at least some shorter-term upside potential over the coming month.

We conclude with a brief update in the Energy sector – the XLE index has stretched lower but is indicative of ending its corrective decline from last December’s high?

28 pages

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