I. Precious Metals
Gold

Gold edged lower on Tuesday, weighed down by a stronger U.S. dollar on the back of concerns about political uncertainty in Europe, while a buoyant stock market also drained enthusiasm for bullion.

The euro is being weighted down on concerns about upcoming Italian elections, problems forming a German government and lingering Brexit concerns, he added.

Spot gold was down 0.6 percent at $1,312.58 per ounce. Prices last week touched their highest since Sept. 15 at $1,325.86. U.S. gold futures for February delivery settled down $6.70, or 0.5 percent, at $1,313.70 per ounce.

On chart, gold failed to breach the Fibonacci 23.6% retracement level at $1,322, suggesting a reverse course on track. Gold is expected to see a correction in the near term with support at $1,300 to $1,302.

On trading strategy, investors are recommended to stay on the sidelines. While those with net long positions may consider cash in profits and rebuild positions after it pulls back. Bears may build short positions, on conditions of strictly setting stop-loss.

Silver

Silver fell 0.93 percent at $16.98 an ounce. Retreating above the 100-day and 200-day moving average, it can find some support at $16.95. Silver is expected to remain rangebound in near term. On trading strategy, investors are recommended to stay on the sidelines.

II. Commodities
Crude Oil

Oil prices edged higher on Tuesday, with U.S. crude touching its highest since December 2014, supported by OPEC-led production cuts and expectations that U.S. crude inventories have dropped for an eighth week in a row.

The Organization of the Petroleum Exporting Countries and allies including Russia are keeping supply limits in place in 2018, a second year of restraint, to reduce a price-denting glut of oil held in inventories.

U.S. West Texas Intermediate (WTI) crude rose $1.23, or 2 percent, to settle at $62.96 a barrel after touching its highest since December 2014 at $63.24. Brent crude ended the session up $1.04, or 1.5 percent, at $68.82 per barrel after hitting a session high of $69.08, its highest since May 2015. Both contracts had their strongest close since December 2014.

We maintain our view that a correction is expected in near term. On trading strategy, investors are recommended to cash in profits in long positions, and build short positions at highs. But stop-profit and stop-loss shall be set appropriately.

Copper

Copper was down 0.3 percent at $7,101 a tonne, remaining at recent lows as the dollar firmed. Traders said funds taking profits on long positions -- bets on higher prices -- weighed on prices of industrial metals after New York opened. In the medium and longer term, lingering huge potential in market demand is expected to push copper higher.

Soybean

U.S. soybean futures fell for the second consecutive day on Tuesday, dented by Friday’s USDA report that confirmed ample global supply. Analysts expected that the USDA would boost U.S. soy ending stocks and estimates for Brazilian soy output. Brazilian farmers are expected to collect 111.8 million tons of soybeans, said a consultancy firm in Brazil. CBOT March soybeans were down 3 cents at $9.63-3/4 a bushel.

Dealing Room, ICBC Beijing Branch
                        Li Nan