I. Precious Metals
Gold

Gold rose on Wednesday, hitting its highest in nearly four months as the dollar swooned after a report that Chinese officials had recommended slowing or halting purchases of U. S. Treasury securities.

The dollar, already under pressure versus the Japanese yen after the Bank of Japan moved to trim its long-dated government bond purchases this week, was on track to post its biggest single-day drop against the yen in seven weeks. The greenback also lost ground against a basket of major currencies. Spot gold was up 0.4 percent at $1,316.89 an ounce. Its session high of $1,326.56 was its highest since Sept. 15.

On chart, gold gaped up to hit multi-month high, but failed to hold above the level. The yellow metal is expected to extend rangebound with resistance at the Fibonacci 23.6% retracement level at $1,322 and support at the key mark of $1,300.

On trading strategy, investors are not recommended to chase highs. Market bears may build short positions gradually by strictly setting stop-loss.

Silver

Silver was up 0.4 percent at $17.01 an ounce, after earlier drifting to $16.86, its lowest since Dec. 29.
Tracking gold, silver extended rangebound. Once the support of the 100-day moving average and 200-day moving average of $16.93 are crossed below, the white metal is expected to see a wave of decline. On trading strategy, investors are recommended to stay on the sidelines, and wait for betting after direction is confirmed.

II. Commodities
Crude Oil

Crude oil prices jumped on Wednesday and settled near three-year highs after U.S. government data showed a drop in crude inventories and production, even as fuel inventories rose.

U.S. crude inventories fell 4.9 million barrels last week, more than the 3.9-million decline forecast, but bigger-than-expected builds in gasoline and fuel stocks offset that drawdown, the Energy Information Administration reported.

The market was bolstered modestly by data showing a sharp decline in U.S. production last week. Analysts said that could have been the result of extreme cold temperatures across the United States.

U.S. West Texas Intermediate (WTI) crude futures settled at $63.57 a barrel, up 61 cents, or 1 percent, their highest settlement since December of 2014. Earlier in the session, prices hit $63.67, their highest since Dec. 9, 2014. Brent crude futures settled at $69.20 a barrel, up 38 cents. The session high for the global benchmark was $69.37, highest since May 2015.

The oil market has been buoyant for weeks, with U.S. crude futures at highs not seen since late 2014, and Brent crude less than $1 per barrel away from a similar milestone.

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

A sharply weaker dollar helped push dollar-denominated industrial metals broadly higher on Wednesday by making them cheaper for users of other currencies. The whole industrial metals complex is being supported by a weaker dollar after a report that China was ready to slow or halt its U.S. Treasury purchases.

Copper closed 0.7 percent higher at $7,153. Copper prices are expected to trade in a narrow range. In the medium and longer term, lingering huge potential in market demand is expected to push copper higher.

Soybean

Chicago soybean futures slid for a third consecutive session on Wednesday, after investors squared positions ahead of the U.S. Department of Agriculture report due Friday, and on improved weather in South America.

The Chicago Board Of Trade March soybean contract fell 8-3/4 cents at $9.55, after hitting $9.51-3/4 a bushel, the lowest since August 31. Analyst expect the USDA to boost U.S. soybean ending stocks and its forecast of production Brazil. Private exporters reported export sales of 260,000 metric tons of soybeans for delivery to unknown destinations.

Dealing Room, ICBC Beijing Branch
                        Li Nan