Copper should hit new lows in coming weeks. The wave down from the summer high is not yet complete and this barometer of economic strength is signalling continued pressure on “risk”. Gold is about to break much lower from its completed double top pattern but Crude Oil is holding on to some bullish potential.
Socionomic evidence also continues to mount of a peak in Gold sentiment. In August, Venezuela announced plans to nationalise their Gold industry. And just this week, plans to open the first gold mine in Scotland for 500 years were approved. These plans do not get announced when Gold is at USD250 per ounce and just at the start of its uptrend. No. Plans like this are announced only AFTER the trend has happened; at USD1,700 per ounce or some 580% higher.
The next Wave Principle Letter will be published on November 11.
HSBC Global Research