I. Precious Metals
Gold
Gold pared early losses and closed up 0.28 percent to $1,226.45 an ounce on Wednesday. A missile launch by North Korea prompted only a brief rally for gold before it fell to an eight-week low of $1,217.14 on rising U.S. bond yields. Bullion rebounded after Federal Reserve minutes showed a growing split among policymakers on the inflation outlook and the dollar pared gains. The payroll report due on Friday is expected to offer guidance for investors.
On technical front, gold is expected to remain rangebound in a tight range ahead of Friday’s payroll report. The support and resistance can be found at the May-low of $1,213.81 and the 200-day moving average of $1,233 respectively.

Silver
Silver was flat on Wednesday, forming a cross pattern on chart that shows a balance between market bulls and bears. On chart, the MACD and momentum index suggest a weak tone despite of support at $16. Silver prices are expected to fall further to $15.8 if the level is breached.

II. Commodities
Crude Oil
Oil prices tumbled about 4 percent on Wednesday, ending their longest string of daily gains in more than five years, as climbing OPEC exports and a stronger dollar spurred selling. OPEC exported 25.92 million barrels per day (bpd) in June, up 450,000 bpd from May and 1.9 million bpd more than a year earlier. Brent crude futures settled down $1.82, or 3.7 percent, at $47.79 a barrel. U.S. West Texas Intermediate crude fell $1.94, or 4.12 percent, to settle at $45.13 a barrel.

Copper
Copper prices eased for a fourth straight session on Wednesday on a surge in warehouse stocks but the threat of strike action at two Chilean mines curbed losses. Benchmark copper on the London Metal Exchange slipped 0.9 percent to a one-week low of $5,841 per tonne in official trade.

Soybean
U.S. soybean futures edged up 1.4 percent to the peak in 3-1/2 months on Wednesday, boosted by technical buying. CBOT November soybeans were up 13-1/2 cents at $9.94-1/4 a bushel, supported by the higher end of the 20-day Bollinger range and the 200-day moving average. August soymeal closed up $4.5 to $318.30 per short ton. August soyoil were flat at 33.24 cents per lb.

Dealing Room, ICBC Beijing Branch
Yang Hui