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COMMODITY OUTLOOK - Base Metals Continue Multi-Month Correction Within Inflation-Pop Uptrend - Gold/Silver/Platinum Set For Further Declines - Crude/Brent Oil Resume Uptrends in Final Phase

In This Edition: Commodity markets were registering bullish sentiment extremes over the last couple of months which triggered contrarian sell-signals across several sectors. Despite the warnings, investors are still overly bullish – earlier this month, Julian Treger, CEO of Anglo Pacific Group published an article in ‘The Assay’ website entitled ‘Why It’s Time to Get Bullish on Base Metals’. Due justice because the article does point out that this is a medium-term view, but from our experience, such titles are timed to temporary extremes – it could have been written 2-years ago when markets were beginning this next phase of our ‘INFLATION-POP’, but it chose the timing when markets are hitting temporary peaks that are expected to now pull prices lower for several months. Copper has just broken below integral support below 6710 which confirms broader declines for the remainder of this year, exacerbated by the ongoing trade tariff war.

Precious metals have turned extremely negative which is also confirming gold, silver and platinum are preparing for sizable declines over the next several months too. Gold is expected to be particularly sensitive to the US$ dollar’s recent corrective rally that began from last February’s lows.

The Energy sector remains bullish but there are distinct differences in performance between Energy (XLE) equities and the underlying strength of Crude/Brent oil. Some corrective declines are still forecast for Crude/Brent oil but overall advances from the Feb.’16 lows remain incomplete.