I. Precious Metals
Gold
Gold prices fell from near seven-month highs on a stronger dollar and after a written testimony by a former FBI director to the U.S. Senate was seen as containing few surprises, but declines were limited as uncertainty from the UK election remained. Former Federal Bureau of Investigation Director James Comey said U.S. President Donald Trump asked him to drop a probe of former national security adviser Michael Flynn as part of an investigation into whether Russia meddled in the 2016 election, according to testimony from Comey posted on the Senate Intelligence Committee's website.
Spot gold was down 0.6 percent at $1,285.17 an ounce. On Tuesday, it gained 1.1 percent to its highest since November last year at $1,295.97. U.S. gold futures slipped to settle at $1,293.2.
Dealers said comments late in the session from the head of U.S. Missile Defense Agency saying North Korea ballistic missile advances in the past six months have caused him "great concern" triggered modest buying in gold. In Britain, markets are worried the ruling Conservative party might not get a majority in Thursday's elections. Prime Minister Theresa May wants to increase her majority to strengthen Britain's hand in exit talks with the European Union. Traders are also looking ahead to a meeting of the U.S. Federal Reserve next week.
On technical front, gold lingered at intra-year highs, failing to cross over the key mark of 1,300. The MACD index showed a strong upward momentum, suggesting potential for a move to $1,320 if the level can be breached. While support can found at the 20-day moving average of $1,267.

Silver
Silver tracked gold, down 0.5 percent at $17.57 an ounce. Technical indicators showed a strong upward momentum. A uptrend can be expected after some consolidations.

II. Commodities
Crude Oil
Oil prices slid 5 percent on Wednesday to a one-month low, after an unexpected increase in U.S. inventories of crude and gasoline fanned fears that output cuts by major world oil producers have not done much to drain a global glut.
Crude stocks in the United States grew 3.3 million barrels to 513 million barrels, according to the U.S. Energy Information Administration (EIA). That confounded forecasters who had predicted a drop of 3.5 million barrels, especially a day after data from the American Petroleum Institute indicated an even bigger fall. Gasoline inventories also unexpectedly rose, imports increased, and exports dropped, the EIA data showed. These figures spell a setback to the joint effort by OPEC and some non-OPEC countries to curb their output.
U.S. crude futures settled down 5 percent, or $2.47 a barrel, at $45.72 a barrel, the lowest settlement for U.S. crude since May 4. U.S. benchmark futures have slid more than 11 percent in 10 days of trading. Brent crude prices fell $2.06, or 4 percent to settle at $48.06 a barrel.

Copper
Copper prices rose on Wednesday after three days of declines as investors judged that a sell-off had run its course despite weaker than expected German manufacturing data that pointed to lower demand, while tin fell to its lowest in three months. Three-month copper on the London Metal Exchange closed up 0.1 percent at $5,621 a tonne. The metal used in power and construction has fallen nearly 2 percent from a high of $5,720 on June 1.
Fund investors were buying copper off the lows and technical resistance was around $5,675-$5,690. Prices supported by a fall in stockpiles at LME-registered warehouses by 5,350 tonnes to 294,225 tonnes, down from a recent high of 340,350 tonnes in mid-May.

Soybean
U.S. Soybeans hit a one-week high on Wednesday on technical buying and spillover strength from corn and wheat. Short-covering can be expected after funds expanded big net short positions in soybeans. CBOT July soybeans finished up 7-1/4 cents at $9.30-3/4 a bushel, after hitting the highest since May 26 at $9.34-1/2. July soymeal closed up $3.8 to $304.90 per short ton. July soyoil ended down 0.03 cents to 31.36 cents per lb. Worries that stressful hot and dry weather might expand from the northern Plains into the northern Midwest provided an extra floor. Analysts expected the USDA would revise up its forecast on 2016/17 soybean production in Brazil and Argentina.

Dealing Room, ICBC Beijing Branch
Li Nan