EUR 318.14 For Business Accounts Only

COMMODITIES OUTLOOK - Base Metals | Precious Metals | Energy

​There are clear indications of downside price-risk developing in Base Metals. Copper has been unable to thrust higher and maintain early-year gains with subsequent action unfolding into a counter-trend triangle pattern. Lead prices have simultaneously unfolded higher from last year’s low into a counter-trend zig zag pattern testing overhead resistance levels highlighted in recent updates. This is bearish action that increases the probability of declines beginning in October, resulting in a break below this year’s lows. This is not localised to Copper and Lead – this will have some downside effect on all Base Metals. Counter-trend declines are also expected in other commodity sectors – Precious Metals are still vulnerable to extend declines from July’s current highs as are the mining stocks reflected in the GDX and XAU indices – we’ll be updating those in this report. The Energy sector is also looking fragile ahead of this month’s informal OPEC meeting in Algiers and next month’s more formal meeting in Vienna. This month’s report updates Crude and Brent oil with expectancy of further price declines. We also anticipate global stock markets to decline by double-digit percentages into the final months of this year – this means commodities will get a tug to the downside in sync, probably due to some economic drift.