I. Precious Metals
Gold

Gold prices remained locked just below $1,300 an ounce on Wednesday. In raising its benchmark overnight lending rate a quarter of a percentage point to a range of between 1.75 percent and 2 percent, the Fed dropped its pledge to keep rates low enough to stimulate the economy "for some time" and signaled it would tolerate above-target inflation at least through 2020.

Fed policymakers projected a slightly faster pace of rate increases in the coming months, with two additional hikes expected by the end of this year, compared to one previously, which would weigh on gold in the middle and longer term. In the near term, gold were muted to the Fed's move as it was widely expected and had been priced in.

Investors are expecting policy announcements from the European Central Bank (ECB) on Thursday which could affect gold prices. Any hints from the ECB to tighten monetary policy will drag bullion down. Sans that, gold could reground upward momentum and breach above the resistance of $1,300.

Silver

Silver rose 0.5 percent at $16.94 an ounce after hitting a seven-week high of $16.99. It failed to cross over previous highs of $17.30. Despite of a successful breach above the key mark of $17, gold saw no remarkable gains, suggesting limited upward momentum in silver. A consolidation in gold and sharp gains in silver could provide a good opportunity for two-way trading in the white metal.

II. Commodities
Crude Oil

Oil prices turned positive on Wednesday after a bigger-than-expected decline in U.S. crude inventories along with surprise drawdowns in gasoline and distillates indicated strong demand in the world's top oil consumer.
Brent crude settled up 86 cents, or 1.1 percent, at $76.74 a barrel and U.S. crude closed 28 cents, 0.4 percent, higher at $66.64 a barrel.

U.S. crude inventories fell 4.1 million barrels last week, the Energy Information Administration said, exceeding analysts' expectations for a decrease of 2.7 million barrels. Estimated U.S. gasoline demand hit a record high of 9.9 million barrels per day (bpd) in the week, the data showed.

The data showed that strong demand was the reason behind the round of rally. Miss of rhetoric on maintaining output cut can be deemed as supply increase, suggesting that investors shall closely watch U.S. rig count. Crude prices are likely to trade between $65.47 to $68.02 in the near term, awaiting more clues.

Copper

Copper hit one-week lows on Wednesday as worries about demand in top consumer China undermined sentiment. Benchmark copper on the London Metal Exchange ended 0.5 percent up at $7,256 a tonne, its highest since June 6, having earlier touched $7,169.

China's total social financing, a broad measure of credit and liquidity, dropped sharply to a 22-month low of 760.8 billion yuan in May, central bank data showed on Tuesday. Weak credit data pulled overall demand lower. But the dollar index and labour negotiations at the Escondida mine in Chile helped would determine copper prices in the near term.

Soybean

U.S. soybean futures plunged to 9-1/2-month lows on Wednesday, falling for the seventh day in the past eight sessions, after a media report renewed fears that China could hit U.S. soybeans with retaliatory tariffs if Washington follows through on threats to slap duties on Chinese goods.

Benchmark Chicago Board of Trade July soybean futures closed down 1.9 percent after touching a low of $9.34-1/4, the lowest for a most active contract month since Aug. 31. Soybean is expected to keep falling in the near term. The trading volume of CBOT soybean, soymeal and soyoil is expected at 415,571 lots, 161,778 lots, and 177,487 lots respectively.

Dealing Room, ICBC Beijing Branch
                        Cheng Yu