I. Precious Metals
Gold
Gold turned lower on Monday, but still lingered around the 50-day moving average.
On fundamentals, U.S. consumer prices rose 0.5 percent in September, lower than expected. Despite of the largest increase in eight months in September CPI, the core inflation has been remaining below the Fed's target of 2 percent annual price gains for six consecutive month, stoking concerns that the Federal Reserve would slower its pace to raise interest rates.
The U.S. central bank still hinted one rates hike within the year. But more doubt was cast on the outlook as U.S. President Donald Trump is working from a short list for a decision on who should chair the Federal Reserve, providing gunpowder for gold’s upward momentum.
Technical front, a golden cross is formed under the axis zero of the MACD index, with a expanding momentum column, suggesting retaining steam in bullion. Investors shall closely watch the movement around $1,300 and $1,320, and can still hold their long positions in the near term,

Silver
Spot silver joined gold’s losses on the similar drivers. But silver prices held above both the 50-day and 200-day moving average, not far from the 100-day moving average, suggesting stronger support compared with bullion.

II. Commodities
Crude Oil
Crude prices rose on Monday as Iraqi forces entered the oil-rich city of Kirkuk, seizing territory from Kurdish fighters and briefly cutting some crude output from OPEC's second-largest producer. Iraqi Kurdistan briefly shut down some 350,000 barrels per day (bpd) of production from the major Bai Hassan and Avana oilfields due to security concerns.
Brent crude futures settled up over 1 percent, while U.S. crude ended 0.8 percent higher. Increased geopolitical tension in the Middle East will disrupt supply, providing support in the market. In the near term, oil prices is expected to hold above $50.

Copper
Copper jumped 3.7 percent to $7,134 per tonne on the London Metal Exchange, after touching a July 2014 high of $7,177 a tonne. Prices are up about 29 percent year to date, on track for the biggest annual gain since 2010.
China's producer price inflation unexpectedly accelerated to a six-month high in September on rising commodities prices. China's unwrought copper imports surged by 26.5 percent in September from a year ago, customs data showed on Friday, but remained on course for an annual drop in 2017.
Investors shall closely watch any pullback triggered by profit-taking.

Soybean
Chicago Board of Trade soybean futures weakened on Monday, giving back some gains on profit taking after the market hit the $10-per-bushel threshold last Friday. CBOT November soybean futures settled down 9-1/4 cents at $9.91 a bushel. The USDA said weekly export inspections of soybeans totaled 1.770 million tonnes, topping forecasts that ranged from 1.100 million to 1.400 million. The trading volume of soybean, soymeal and soyoil was expected to stand at 248,306 lots, 66,350 lots, and 59,255 lots respectively.

Dealing Room, ICBC Beijing Branch
Cheng Yu