I. Precious Metals
Gold
Gold steadied after touching a 2-1/2 week low on Wednesday on reports that Republican senators favored John Taylor to become the next head of the U.S. Federal Reserve, which drove U.S. bond yields to multi-month highs. The market was pricing in one rate increase in December and one more next year, while the Fed itself envisaged three rate hikes in 2018 and was likely to move more rapidly than previously expected under Taylor.
While that kept prices of the precious metal under pressure, geopolitical risk pulled bullion prices back from earlier losses. A senior diplomat in North Korea said the foreign minister's warning of a possible atmospheric nuclear test over the Pacific Ocean should be taken literally. North Korean Minister of Foreign Affairs Ri Yong Ho said in September that Pyongyang may consider conducting "the most powerful detonation" of a hydrogen bomb over the Pacific Ocean amid rising tensions with the United States.
Bullion prices were hovering just above its 100-day moving average at $1,275, and is expected to take rangebound between $1,275 to $1,285.

Silver
Silver was down 0.06 percent at $16.93 an ounce, tracking gold’s trajectory. It remained rangebound, reversing early losses. On trading strategy, investors can take bargain hunting and sell on highs with resistance and support at $17 and $16.88 respectively in the near term.

II. Commodities
Crude Oil
U.S. oil prices slipped on Wednesday after a surprising increase in U.S. crude inventories. Crude inventories rose by 856,000 barrels in the week to Oct. 20, the U.S. Energy Information Administration said. Analysts had expected a decrease of 2.6 million barrels.
Brent crude edged up after top exporter Saudi Arabia reiterated its determination to end a three-year supply glut. Brent crude futures settled up 11 cents at $58.44 a barrel. U.S. West Texas Intermediate crude dropped 29 cents to $52.18.
Technical front, crude prices is expected to pull back in near term after hitting previous resistance.

Copper
Copper steadied on Wednesday after two days of gains as stock markets slid after a series of record highs, pointing to a more cautious mood among investors. But a retreat in the dollar lifted the broader metals complex.
Three-month copper on the London Metal Exchange closed up 0.1 percent at $7,010 a tonne. Technically, it's going to continue to meet resistance around $7,000 and above and get rebuffed, but there will be dip buying by other specs and investors keeping it pretty stable.

Soybean
Chicago Board of Trade soybean futures were mixed on Wednesday, with the front-month contract giving up early gains to close slightly lower on technical selling. Deferred contracts edged higher.
The benchmark CBOT November soybean contract hit resistance as it neared its 10-day moving average. Chicago Board of Trade soybeans for November delivery were unchanged at $9.75-1/2 a bushel. Support for CBOT November soybeans was noted at the 200-day moving average.
Soymeal futures firmed while soyoil weakened. December soymeal closed up $1.2 to $315.4 a tonne, while December soyoil ended down 0.08 cent at 34.26 cents per pound.

Dealing Room, ICBC Beijing Branch
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