I. Precious Metals
Gold
Gold was little changed ahead of a U.S. Federal Reserve policy meeting on Tuesday and Wednesday, with analysts saying the U.S. central bank could take an aggressively hawkish posture of signaling a balance sheet reduction later this year and another interest rate increase in December.
Spot gold was up 0.08 percent at $1,266.92 an ounce, having shed 1 percent on Friday in its biggest one-day percentage fall since May 18. U.S. gold futures settled down 0.2 percent at $1,268.90.
Overall, precious metals markets are waiting for the outcome of the Fed's meeting on Wednesday. Higher rates, as expected by the market, could boost the dollar, making commodities priced in the greenback more expensive for holders of other currencies.
On technical front, gold was little changed, signaling signs of stabilization at this level. But the MACD index is about to form a dead cross at highs, suggesting shrinking momentum column. Investors shall remain cautious ahead of the FOMC’s statement on interest rate hike. 

Silver
Silver fell more than 1 percent to a 2-1/2-week low of $16.87 an ounce, diverging from gold to close around the 30-day moving average of $16.96. Historically, market would follow silver’s trajectory when the two precious metals diverged. Silver is expected to keep testing the support of the 30-day moving average. The next support can be found at $16.82.

II. Commodities
Crude Oil
Oil edged up on Monday on signs of inventory declines in the United States and news that Saudi Arabia will limit volumes of crude to some Asian buyers in July and deepen cuts to the United States. Saudi Arabia, the world's top oil exporter, will cut crude allocations to Asia in July to a total of about 300,000 barrels per day (bpd), deeper than in June, sources told Reuters. One source said volumes to the United States would be cut by about 35 percent in July.
Data from market intelligence firm Genscape estimating a draw of more than 1.8 million barrels at the Cushing, Oklahoma delivery point for U.S. crude futures last week added to the bullish sentiment.
Brent crude futures ended the session up 14 cents, or 0.3 percent at $48.29 a barrel, having risen as much as 2 percent to a session high of $49.15. U.S. West Texas Intermediate (WTI) crude futures gained 25 cents, or 0.6 percent, to settle at $46.08, having peaked at $46.71. Prices plunged about 5 percent last week after data from the U.S. Department of Energy showed a surprise increase in stockpiles.
Some traders and analysts said the rise looked technical in nature, after WTI rallied and encouraged a similar move in the Brent market. Traders also noted the price rise came as data showed speculative traders had increased their investment in crude futures by taking on large volumes of long positions.

Copper
Copper prices slipped on Monday ahead of a meeting of the U.S. Federal Reserve and economic data from top consumer China that could yield clues to future demand growth. Benchmark copper on the London Metal Exchange ended down 0.5 percent at $5,772 a tonne. That compares with Friday's two-month high at $5,832.
A two-day meeting of the U.S. central bank that ends on Wednesday is expected to result in a U.S. interest rate rise. Investors will also be looking for clues to the timing and pace of further tightening. China's economy is expected to show steady growth in May, buoyed by solid gains in trade and investment.
Traders were watching stock movements in LME approved warehouses which rose 2,700 tonnes to 279,575 tonnes, but overall inventories are still down more than 20 percent since May 4.
Support can be found at $5,785 near the 100-day moving average and $5,700 near the 55-day moving average.

Soybean
CBOT July soybean futures dropped 10-1/4 cents to $9.31-1/4 a bushel, dampened by rains in the U.S., and talk that China has ramped up checks on imports of genetically modified (GMO) beans. July soymeal closed down $4.10 to $301.80 per short ton. July soyoil ended down 0.35 cents to 31.94 cents per lb. Analysts were expecting the USDA report to show that the soybean crop was rated 70 percent good to excellent, while soybean planting was 94 percent complete, compared to 83 percent a week earlier.

Dealing Room, ICBC Beijing Branch
Huang Han