I. Precious Metals
Gold
Gold rose more than 1 percent at $1,281.46 an ounce on Monday, extending gains as geopolitical risks drove investors to safe-haven assets after the metal's third-straight weekly decline. Geopolitical issues in Saudi Arabia over the weekend and into today drove the price of gold up. The U.S. dollar dropped against a basket of currencies, also boosting gold.
We are not surprised by the pullback in the dollar index as technical correction is needed after the largest one-week advance in the year. Gold was supported, but market bullish sentiment cooled down. Hedge funds and money managers reduced their net long position in COMEX gold contracts for the seventh straight week, in the week to Oct. 31, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday.
On chart, gold lingered around the 100-day moving average with strong support at the 200-day moving average of $1,262.68 which held against two tests last Friday and on Monday. The MACD index also pointed to a relatively balanced situation. Bullion is expected to remain rangebound in coming sessions with resistance at $1,285. A breakthrough would move the next resistance up to the 50-day moving average of $1,296.35.

Silver
Silver surged 2.4 percent at $17.20 an ounce, tracking gold’s trajectory. On chart, the white metal remained rangebound between the 50-day and 100-day moving average, and is trying to test the resistance of $17.20. In case of breakthrough, the next resistance can be found at $17.35.

II. Commodities
Crude Oil
Oil prices rose 3.5 percent on Monday, hitting the highest since early July 2015, as Saudi Arabia's crown prince cemented his power with an anti-corruption crackdown, while the U.S. rig count fell and markets continued to tighten.
Brent crude futures settled up $2.20, or 3.5 percent, to $64.27 per barrel. U.S. West Texas Intermediate (WTI) crude rose $1.71, or 3 percent, to $57.35 a barrel. Both benchmarks were at their highest since early July 2015.
Saudi Crown Prince Mohammed bin Salman tightened his grip with the arrest of royals, ministers and investors. The arrests, which an official said were just "phase one" of the crackdown, are the latest in a series of dramatic steps by Prince Mohammed to amass more power for himself at home.

Copper
Copper closed up 1.1 percent at $6,970. Copper prices have climbed 7 percent this quarter and are eyeing a sixth straight quarter of growth.
Copper production in Democratic Republic of Congo, Africa's top producer of the metal, was up 9.3 percent this year through September over the same period last year at 831,000 tonnes. Copper’s strength was boosted by expectations of healthy demand from the electric vehicle sector, a pollution crackdown in China and signs of solid global economic growth.
But some market participants believed that the base metal will lose its steam without support from new themes.

Soybean
U.S. soybean futures rose on Monday, boosted by the spillover of a higher soyoil futures and on expectations the USDA will lower U.S. soybean yield in its monthly report this week. Soyoil futures rose as oil prices surged, and on expectations that heating demand in coming sessions will beat previous estimates. Chicago Board of Trade January soybeans gained 7-1/4 cents to $9.94 a bushel.

Dealing Room, ICBC Beijing Branch
Li Nan