I. Precious Metals
Gold

Gold prices rose on Wednesday as the dollar fell on weak U.S. economic data ahead of the U.S. Federal Reserve minutes of its latest meeting. Spot gold was up 0.9 percent at $1,292.32 ounce.

The dollar fell against a basket of currencies, and prices for U.S. Treasuries slipped after new orders for key U.S.-made capital goods unexpectedly fell in October. Many Federal Reserve policymakers expect that interest rates will have to be raised in the "near term," according to the minutes of the U.S. central bank's last policy meeting released on Wednesday. While many of the officials said weak inflation report will pull long-term inflation down as U.S. inflation is expected to remain below its 2 percent target for longer than expected.

After the release of the U.S. Federal Reserve released minutes, the Fed is almost certain to raise interest rates next month. But difference among policymakers on the path of rates hike showed concerns over stock market. The dollar fell to its lowest level since October against a basket of major currencies, boosting bullion. In case of failure by President Donald Trump in enforcing his tax overhaul, safe-haven demand will be triggered that will send gold higher.

On technical front, gold remained within the trading range since October with next resistance at $1,296. On the one hand, market expectations for interest rate hike next month and future policy direction came against bullion. On the other hand, hovering safe-haven demand continued to lift gold. Investors are recommended to stay on the sidelines for clear signal before building positions.

Silver

Silver was up 1 percent at $17.11 an ounce, remaining around the midpoints of the trading range between $16.5 to $17.5. On trading strategy, investors shall follow that of gold due to lack of direction and low volatility.

II. Commodities
Crude Oil

Oil settled at a two-year high Wednesday after the shutdown of one of the largest crude pipelines from Canada cut supply to the United States. The restart of the 590,000 barrel-per-day (bpd) Keystone pipeline, shut last week due to a spill, could take several weeks. It will cut deliveries on the pipeline linking Alberta's oil sands with U.S. refineries by 85 percent through the end of November.

U.S. West Texas Intermediate crude (WTI) futures settled up $1.19, or 2 percent, at $58.02 per barrel. Brent crude settled up 75 cents, or 1.2 percent, at $63.32 a barrel.

Market participants bet that major oil producers will extend the cut agreement to cover the whole of next year at OPEC’s Nov. 30 meeting. U.S. energy companies this week added oil rigs, with the monthly rig count rising for the first time since July. Drillers added nine oil rigs in the week to Nov. 22, bringing the total count up to 747, General Electric Co's Baker Hughes energy services firm said. Prices will be buoyed ahead of the OPEC meeting.

On technical front, oil prices peaked in near term and closed around their resistance yesterday. On trading strategy, investors may square their long positions to build short positions at highs if the OPEC strikes a deal to extend the cut agreement.

Copper

LME three-month copper ended 0.7 percent firmer at $6,954 a tonne, drawing further near to the key mark of $7,000. A successful breakthrough will lift prices to the intra-year high of $7,134.

On trading strategy, investors shall closely watch possible falling commodity prices due to the pullback in stock market, as further gains will be limited. Chasing high is not recommended.

Soybean

Chicago soybean futures rose Wednesday on technical buying ahead of the U.S. Thanksgiving holiday, analysts said. Additional support stemmed from worries that the La Nina weather phenomenon, expected to emerge next month, could stress soy and corn crops in South America.

Chicago Board of Trade January soybean futures settled up 8-1/4 cents at $9.97-1/4 per bushel after reaching $9.99-1/2, the contract's highest since Nov. 9.

Australia's Bureau of Meteorology issued an alert for a La Nina weather event starting next month, saying the chance it would take place was triple the normal likelihood. U.S. markets will be closed on Thursday.

Dealing Room, ICBC Beijing Branch
                         Qin Gang