I. Precious Metals
Gold

Gold climbed nearly 1 percent on Tuesday, having drifted near $1,200 an ounce this week, as the U.S. dollar fell versus China's yuan against a backdrop of U.S.-China trade tensions. Spot gold gained 0.3 percent at $1,210.06 per ounce, while U.S. gold futures for December delivery settled up 60 cents, or 0.1 percent, at $1,218.30.

Chinese shares jumped the most in more than two years on investor hopes of fresh government spending and amid a pause in the trade tensions, while the dollar slid versus the yuan and a currency basket. At the moment gold is more sensitive to the yuan than the dollar, so if the dollar is rallying but not against the yuan, gold is stable.

United States moved to reimpose sanctions on Iran. The sanctions target Iran's U.S. dollar purchases, metals trading, coal, industrial software and its auto sector. Traders expect more Iran gold demand as investors seek to use bullion to operate globally. Gold is expected to start bottoming out around $1,200, but at a slow pace, as yuan steadied and an expected increasing demand from Iran.

Silver

Silver rose 0.7 percent to $15.37 an ounce, still entrapping in current trading range. We believe the trend will continue with support and resistance at $15.20 and $15.70 respectively.

II. Commodities
Crude Oil

Oil prices rose on Tuesday after U.S. sanctions on Iranian goods went into effect, intensifying concerns that sanctions on Iranian oil, expected in November, could cause supply shortages.

Brent futures rose 90 cents, or 1.2 percent, to settle at $74.65 a barrel, after hitting a session high of $74.90. U.S. West Texas Intermediate (WTI) crude futures settled 16 cents, or 0.2 percent, higher at $69.17 a barrel, down from an earlier high of $69.83.

Renewed U.S. sanctions against OPEC member Iran officially went into effect at 12:01 a.m. EDT. The sanctions did not include Iran's oil exports. The country exported almost 3 million barrels per day (bpd) of crude in July. U.S. sanctions on Iran's energy sector are set to be re-imposed after a 180-day "wind-down period" ending on Nov. 4.

Oil is expected to rise in the near term. Investors shall keep an eye on whether it could breach the resistance of $70.20.

Copper

Base metals rose on Tuesday on short-covering amid optimism top consumer China will prop up its economy with stimulus measures and that the country's currency is stabilising.

Shares in Chinese infrastructure firms received a boost from expectations of increased spending on public works projects. China Railway was reported in domestic media as saying China would boost its fixed asset investment in railways to 800 billion yuan ($117 billion) in 2018, an increase of 9.3 percent over its original plan.

Metals were supported by a weaker dollar index, which slipped 0.3 percent, its biggest drop in a week. LME copper gained 0.7 percent to finish at $6,175 a tonne, with gains tempered during the session.

Soybean

U.S. soybean futures firmed around 1 percent on Tuesday after a weekly government survey lowered condition ratings for the U.S. crop by more than expected.

Chicago Board of Trade September soybeans closed 12-1/2 cents higher at $8.95-1/4 a bushel, while November soybeans, the most actively traded contract that represents the next harvest, were up 12-1/4 cents, or 1.4 percent, at $9.05-3/4 a bushel.

Soymeal and soyoil futures also rose. September soymeal was up $2.60 to $331 a tonne, while September soyoil slipped 0.3 cents to 28.75 cents. The USDA cut the soybean crop in good to excellent condition by 3 percent to 67 percent.

Dealing Room, ICBC Beijing Branch
                        Huang Han