I. Precious Metals
Gold
Gold prices fell on Wednesday after the U.S. Federal Reserve left interest rates unchanged but signaled it still expected to raise interest rates by year-end. In line with expectations the Fed said it would begin in October to cut its balance sheet, but surprised some investors to keep its resolutions.
When asked on what conditions would the Fed turns to easing again, Fed Chair Janet Yellen said the bar to change course on the planned wind-down of the Fed’s balance sheet is high, and no such information can be disclosed.
After the statement, the dollar rose, while gold pulled back below the key mark of $1,300, hitting 1,295.81 an ounce, the lowest since August 28. Bullion closed down 1 percent to 1,298.1 an ounce.
Investors are more confident that the central bank would kept tightening its balance sheet, including cutting up to $30 billion in U.S. Treasury bonds and $20 billion in mortgage-backed securities holdings each month. Yellen promised that the aforementioned schedule will not be changed.
On technical front, gold closed below the key mark of $1,300, with a relatively bearish outlook. The support could be found at the 50-day moving average at $1,288, and the 100-day moving average of 1,267 that converges with the long-term downward path. Gold is expected to hit bottom within the aforementioned range.

Silver
Spot silver was down 1.66 percent at $17.033 an ounce on Wednesday. The white metal closed at around the 200-day moving average at $17.10 in the previous session, after crossing below the 200-day moving average and the 50-day moving average successively. We hold a bearish view on silver and believe it is more likely to lose the ground of $17.

II. Commodities
Crude Oil
Oil prices settled up 2 percent on Wednesday after the Iraqi oil minister said OPEC and its partners were considering extending or deepening output cuts. Brent crude futures rose $1.15, or 2.0.9 percent, to $56.29 a barrel, while U.S. West Texas Intermediate (WTI) crude futures gained 93 cents, or 1.9 percent, to $50.41. Crude prices were on course for a nearly 16 percent rise this quarter, which would make this year's performance the strongest for the third quarter since 2004.
U.S. crude oil stockpiles jumped last week as imports and production increased, the U.S. Energy Information Administration said, as operations resumed from the impact of Hurricane Harvey which hit the Gulf Coast on Aug. 25. Crude inventories rose for a third straight week, building by 4.6 million barrels, about a million more barrels than forecast. The Brent/WTI spread widened 36 cents to settle at negative $5.60.
On Friday the Organization of the Petroleum Exporting Countries and other producers will meet in Vienna to discuss the progress of their deal to limit output. The group is considering a range of options, including an extension of cuts, Iraqi oil minister Jabar al-Luaibi told an energy conference on Tuesday.

Copper
LME copper finished 0.2 percent down at $6,527 a tonne, ending three days of modest gains. The global refined copper market showed a 70,000 tonne deficit in June, compared with a 50,000 tonne deficit in May, the International Copper Study Group (ICSG) said. On chart, copper prices are expected to pull back, suppressed by the 10-day moving average. The resistance and support can be found at $6,575 and $6,500 respectively.

Soybean
Chicago Board of Trade soybean futures closed modestly higher on Wednesday, halting a three-session slide. CBOT November soybeans settled up 4-1/2 cents at $9.70 per bushel. The U.S. Department of Agriculture said private exporters sold 1.2 million tonnes of U.S. soybeans, including 1.08 million tonnes to unknown destinations. The soybean sales announcement was the USDA's eighth in the last nine business days. CBOT December soymeal ended up $1.40 at $310.10 per short ton. CBOT December soyoil ended up 0.15 cent at 34.91 cents per pound. The trading volume of CBOT soybean futures, soyoil and soyoil was expected at 113,043 lots, 66,221 lots and 94,815 lots respectively.

Dealing Room, ICBC Beijing Branch
Lv Yan