I. Precious Metals
Gold

Gold fell to a more than 18-month low on Wednesday as the dollar climbed towards its highest in over a year on concerns about global market contagion triggered by recent declines in the Turkish lira. Spot gold lost 1.37 percent at $1,177.32 per ounce, after hitting its lowest since early January 2017 at $1,174.35.

The story for gold is very much about dollar strength and emerging market weakness. This is happening in an environment where the dollar is looking very strong relative to other currencies.

We believe that bargain-hunting shall be avoid as gold’s slowdown shows no signs of reversing on chart. Investors are recommended to stay on the sidelines till precious metal bottom up as the dollar’s strength came to a halt and emerging markets recovered.

Silver

Spot silver lost 3.3 percent at $14.46 an ounce after falling to its lowest since February 2016, at $14.32. The white metal tracked gold and is expected to remain weak with support at $13.8.

II. Commodities
Crude Oil

Oil futures slid on Wednesday, after government data showed a surprise weekly increase in domestic crude stockpiles, compounding worries about the global economic growth outlook. U.S. crude futures settled at $65.01 a barrel, down $2.03, or 3 percent. Brent crude futures were down $1.70, or 2.35 percent, at $70.76 a barrel.

U.S. crude inventories last week rose 6.8 million barrels even though refinery crude runs hit a record high, Energy Information Administration data showed. Crude stocks at the Cushing, Oklahoma, delivery hub for U.S. crude futures rose 1.6 million barrels.

Rising U.S. stockpiles and a deepening trade spat are undermining oil demand, keeping crude prices in check and pulling U.S. crude to the 200-day moving average, a key support level. On trading strategy, investors may consider trade within range, namely between the 200-day moving average at 64.31 (for U.S. crude) and $70.2 (for Brent) to the 100-day moving average at 68.32 (for U.S. crude) and $74.62 (for Brent) , and set stop-loss and stop-profit.

Copper

Industrial metal prices tumbled on Wednesday on concerns about the hit to global growth and demand from trade disputes and political tensions, as well as a stronger dollar. Benchmark copper on the London Metal Exchange hit a 15-month low of $5,773 a tonne. Copper is expected to fall further amid deepening trading spat with support at $5,500 in focus.

Soybean

U.S. soybean futures erased early gains on rainfall in the U.S. Midwest crop belt and a firmer dollar, and on concerns that deepening trade friction would hurt export. Chicago Board of Trade September soybeans fell 10-3/4 cents to $8.57-1/2 a bushel. Soybean prices is expected to be kept in check under pressure.

Dealing Room, ICBC Beijing Branch
                        Qin Gang