I. Precious Metals
Gold
Gold prices extended losses on Tuesday, seeking support around $1,280,on speculation that the eventual successor to U.S. Federal Reserve Chair Janet Yellen will favor higher interest rates. Uncertainty about the next Fed chair being interpreted as being more hawkish encouraged more selling.
Meanwhile, the U.S. Labor Department said on Tuesday import prices jumped 0.7 percent last month, the biggest gain since June 2016, pushing inflation expectations higher and increasing the likelihood of monetary policy tightening.
Technical front, gold's upward momentum remains on track despite of yesterday's decline. Investors shall closely watch the movement around $1,300 and $1,320, and the support at $1,260. In case that the support is breached, investors shall square their long positions to stop loss.

Silver
Silver fell on Tuesday, having touched a one-week low of $16.92. Technically, silver prices crossed below the the 50-day and 200-day moving average, seeking support from the 100-day moving average. Without a sharp loss in bullion, the white metal is expected to see limited losses. Investors shall closely watch the support at the 100-day moving average, and are recommended to hold their long positions.

II. Commodities
Crude Oil
Oil prices ended little changed on Tuesday, steadying after earlier gains and losses. Brent crude futures gained 6 cents, or 0.1 percent, to settle at $57.88 per barrel, while U.S. crude gained 1 cent to settle at $51.88.
The Baghdad government recaptured territory across northern Iraq from Kurds on Tuesday, widening a campaign that has shifted the balance of power in the country. The fighting in one of Iraq's main oil-producing areas helped to restore a risk premium on oil prices, boosting oil prices.
However, the security premium built into prices from the Iraqi-Kurdish situation is in the process of vanishing. Expectations of high U.S. production and exports offset concerns that fighting between Iraqi and Kurdish forces could threaten the country's crude output.

Copper
LME three-month copper shed 1.5 percent to finish at $7,027 a tonne, hit by profit-taking after its biggest daily jump in eight months on Monday. Prices struck $7,177 in the previous session, the highest since July 2014.
Upbeat Chinese economy and optimism about demand remain on track to buoy copper's strength. The metal used in construction is expected to pull back in the near term after hitting highs. But we maintain our bullish view in the medium and longer term.

Soybean
U.S. soybean futures fell on Tuesday, pressured by improving weather for harvest in the U.S. Midwest as well as rain forecasts that will boost early crop development in Brazil, traders said. Chicago Board of Trade soybeans for November delivery dropped 6-1/4 cents to settle at $9.84-3/4 a bushel. December soymeal closed down $2.9 to $321.6 a tonne, while December soyoil was flat at 33.59 cents per pound. The trading volume of soybean, soymeal and soyoil was expected to stand at 196,791 lots, 65,737 lots, and 68,094 lots respectively.

Dealing Room, ICBC Beijing Branch
Cheng Yu