I. Precious Metals
Gold

Gold held steady near 2-1/2-month highs on Tuesday as dollar weakness offset improved risk appetite among investors, reflected in recovering global stock markets. Spot gold was unchanged at $1,226.29 per ounce, having peaked at $1,233.26 in the previous session, its highest since July 26. U.S. gold futures settled up $0.7, or 0.1 percent, at $1,231 an ounce.

Holdings of SPDR Gold Trust, the largest gold-backed exchange traded fund, rose for a second straight session on Monday, adding 4.1 tonnes. Holdings have gained about 2.5 percent in the past seven days, which, some analysts said, is a shift in perception in sentiment among gold ETF investors.

The Saudi situation seems to be on the mend, adding to a weaker dollar in drive up this round of rally. On the technical front, gold prices were trading around the 100-day moving average of $1,227. Gold is expected to trade between the 100-day moving at $1,200 and the 100-day moving average at around $1,227.

Silver

Silver was down 0.1 percent at $14.64 an ounce, having touched its highest since Oct. 2 at $14.85 earlier in the session. We maintained our view that the white metal poked above the key resistance of the 50-day moving average, and the weekly K-chart also rose above the 10-week moving average, forming a golden cross with the 5-week moving average that suggests a new wave of rally in the medium term.

II. Commodities
Crude Oil

Oil prices edged up in cautious trade on Tuesday as expectations of higher U.S. shale output and inventories vied with worries that crude supply from the Middle East could be disrupted by looming U.S. sanctions on Iran and growing tensions with top exporter Saudi Arabia.

Brent crude rose 63 cents, or 0.8 percent, to settle at $81.41 a barrel, while West Texas Intermediate (WTI) crude ended the session up 14 cents at $71.92 a barrel.

The focus within the oil trade during the next couple of weeks is likely to be on Iran and Saudi Arabia. Geopolitical tensions between U.S. and Saudi Arabia are expected to be tempered gradually due to their historical close relations.

If tensions with Saudi escalated and the Kingdom cut production as a response to the White House, oil prices would rise before trading range-bound.

Copper

Copper prices slid on Tuesday amid lean factory-gate inflation data in China and nagging concerns about global growth, trade tensions and rising U.S. interest rates.

Chinese stocks fell overnight after data showed factory-gate inflation in the world's top copper consumer had cooled for a third straight month in September. A degree of calm returned to battered global stock markets, although caution prevailed given tensions with Saudi Arabia, trade worries and concerns over a global growth slowdown.

Three-month copper on the London Metal Exchange ended down 1.4 percent at $6,215.50 tonne. The metal has been range-bound since mid-September but is down around 14 percent since its June peak.

On technical front, we maintain our view that copper is expected to keep trading within the wide range of the 50-day moving average of $6,105 and the 100-day moving average of $6,354.

Soybean

U.S. soybean futures fell on Tuesday on improving harvest weather in the Midwest crop belt and some profit-taking a day after the most active November contract neared two-month highs, traders said.

Chicago Board of Trade November soybeans settled down 6-3/4 cents at $8.84-3/4 per bushel, within Monday’s trading range. December soymeal fell $4.7 to $322.3 per short ton. December soyoil slid 0.1 cent to 29.66 per pound.

Dealing Room, ICBC Beijing Branch
                        Huang Han