I. Precious Metals
Gold
Gold extended gains on Tuesday, lingering around $1,210, as a drop in equities drove safe-haven buying and the U.S. dollar retreated. U.S. stocks and the dollar reversed gains after U.S. President Donald Trump's eldest son released an email chain which mentioned a top Russian government prosecutor offering the Trump campaign damaging information about Democratic rival Hillary Clinton. Concerns on political risks in the U.S. Would boost gold prices. Traders awaited a speech from U.S. Federal Reserve Chair Janet Yellen later this week and any signs of tightening of monetary policy from the central bank. A hawkish speech would cap gold’s gains.
On chart, gold formed a M-shaped top with limited up momentum, suggesting further falls. The support can be found at $1,200 and $1,180 successively, while resistance can be found at the 200-day moving average of $1,232.

Silver
Silver rose on Tuesday, off a four-month low. But investors shall closely watch the risk of widening trading range and the MACD index after sharp losses last week, and trade accordingly. The white metal is expected to keep current downtrend with limited upward potentials. We maintain our vies that the support and resistance can be found at $15 and the 50-day moving average of $16.74 respectively.

II. Commodities
Crude Oil
Oil prices climbed more than 1 percent on Tuesday, off previous lows, but still with a downbeat outlook. Benchmark Brent futures rose 64 cents, or 1.4 percent, to settle at $47.52 a barrel. U.S. West Texas Intermediate crude also rose 64 cents, or 1.4 percent, to settle at $45.04 per barrel.
Analysts expected for a decrease of 2.9 million barrels in U.S. crude inventories last week, and a build-up of 1.1 million barrels in gasoline and distillate stocks. European refineries increased crude oil intake in June, but stocks of oil products, particularly diesel, slid, Euroilstock data showed on Tuesday.
Oil is expected to fall in the medium term as recent strength did not change the fact of a global supply glut.

Copper
Copper prices rose on Tuesday after a rapid build-up of inventories that has weighed on the market since late June halted and workers voted to strike at a mine in Chile, raising supply concerns. Prices had slipped nearly 3 percent since late June as stocks in LME-registered warehouses rose by a third, signalling plentiful supply. Stocks fell 225 tonnes on Tuesday to 319,750 tonnes. However, growth in China and the United States in the longer term was likely to slow while interest rate rises would strengthen the U.S. dollar, making metals more expensive for holders of other currencies.

Soybean
U.S. soybean futures hit a four-month high Tuesday on worries about stressful crop weather in the Midwest and as traders squared positions one day ahead of monthly reports from the U.S. Department of Agriculture. Analysts expect the government to lower its forecasts of U.S. soybean ending stocks for the 2016-17 and 2017-18 marketing years. Chicago Board of Trade August soybeans settled up 4-1/2 cents at $10.29-1/4 per bushel after reaching $10.32-1/2, the contract's highest since March 9. The trading volume for soybean, soymeal and soyoil stood at 282,183, 119,423 and 142,190 lots respectively.

Dealing Room, ICBC Beijing Branch
Cheng Yu