I. Precious Metals
Gold

Gold inched higher on Monday, as investors anticipated the U.S. central bank monetary policy meeting this week that is expected to boost interest rates, and ahead of a U.S.-North Korea summit.

The U.S. Federal Reserve will likely raise its target interest rate to above the rate of inflation for the first time in a decade, seeking to sustain the second-longest U.S. expansion on record while continuing to edge rates higher.

Weighing on gold were encouraging signs from U.S. President Donald Trump about a summit with North Korean leader Kim Jong Un in Singapore on denuclearization efforts, dimming gold's safe haven attraction.

On chart, gold was tight rangebound around the key mark of $1,300, awaiting more clues. The yellow metal remained hemmed within its narrowest weekly range in a decade. Investor shall closely watch the phenomena of “buying on news and sell of facts”.

Silver

Silver was entrapped into correction under the resistance of the key mark of $17. Without support from a weakening gold, the white metal sees limited upward momentum.

On chart, the golden cross in the MACD index is not sufficient to sustain silver’s gains. In the near term, every rally can be deemed as an opportunity for two-way trading if gold fails to cross above key mark.

II. Commodities
Crude Oil

Oil prices were little changed on Monday as comments from the Iraqi oil minister cast doubt as to whether the Organization of the Petroleum Exporting Countries would decide to boost output at its upcoming meeting.

Global benchmark Brent crude was unchanged to settle at $76.46 a barrel. U.S. West Texas Intermediate crude rose 36 cents to settle at $66.07, its highest level since June 1. U.S. crude's relative gains were the result of profit-taking on the wide spread between the two benchmarks,

Even as OPEC trims output, production from non-OPEC members, including the United States and Russia, is rising.

Russian news agency Interfax said on Saturday that the country's production had surpassed its target, hitting 11.1 million bpd in early June.

Oil prices are expected to fall further if the OPEC meeting decided to not to maintain its output cut. In the near term, investors shall stay in the sidelines, awaiting more clues for guidance.

Copper

Copper prices slid on Monday as fears about output disruption at the Escondida mine in Chile receded, but worries about supplies from Vedanta's copper smelter in India and a softer dollar provided some support.

Benchmark copper on the London Metal Exchange ended down 0.8 percent at $7,255 a tonne. Last week, the metal used widely in the power and construction industries touched $7,348, its highest since January 2014.

The Indian state of Tamil Nadu ordered the permanent closure of a copper smelter controlled by Vedanta Resources in May after 13 people protesting to demand its shutdown on environmental grounds were killed. The smelter has capacity to produce 400,000 tonnes a year.

Signs of robust demand from top consumer China are also expected to underpin copper prices.

Soybean

U.S. soybean futures slumped Monday on long liquidation by commodity funds over trade uncertainty, and strong start for U.S. planting season. CBOT July soybeans were down 15-1/2 cents, or 1.6 percent, at $9.53-3/4 a bushel, after hitting the lowest since Aug. 16 at $9.53-1/4 a bushel.

Elevated trade tensions between the United States and major trading partners like China, Mexico and Canada weighed down grain prices in general amid concerns about slower export demand.

The trading volume of CBOT soybean, soymeal and soyoil is expected at 294,695 lots, 164,614 lots, and 143,404 lots respectively.

Dealing Room, ICBC Beijing Branch
                        Lv Yan