I. Precious Metals
Gold

Gold prices rose on Tuesday, but gains were limited as traders weighed a buoyant dollar against a deepening political crisis in Italy that provoked a second day of heavy selling on European financial markets.

Italy's president set the country on a path to early elections on Monday, appointing a former International Monetary Fund official as interim prime minister with the task of planning for snap polls and passing the next budget.

Investors fear repeat elections - which could take place as soon as August - might serve as a quasi-referendum on Italy's role in the European Union and euro zone and strengthen the country's euroskeptic parties even further.

Gold, seen as a safe haven, often gains from political turmoil. But keeping the metal's upside in check, the events in Italy pushed the dollar to a 10-month high versus the euro, making dollar-priced gold costlier for non-U.S. investors.

Spot gold gained 0.18 percent at $1,300.01 per ounce by 1:36 p.m. EDT (1736 GMT), earlier hitting a five-day low of $1,293.40, while U.S. gold futures for June delivery settled down $4.70, or 0.4 percent, at $1,299 per ounce.

On trading strategy, the dollar index was trading around 95, and is more likely to turn lower in coming sessions, instead of turning higher. But it’s hard to determine whether the dollar would fall from current level, or cross above 95 before coming off. Investors are recommended to bet on a rebound after the dollar index comes off 95, forming a long upper shadow line.

Silver

Silver lost 0.5 percent at $16.38 an ounce, earlier hitting $16.28, an eight-day low. Overall, the white metal keeps rangebound at lows, as the dollar’s gains were offset by concerns over political turmoil in Europe. We maintain our view that investors shall await till the dollar index forms an upper shadow line.

II. Commodities
Crude Oil

U.S. crude futures fell more than $1 on Tuesday on worries that Saudi Arabia and Russia will pump more crude to boost supplies after more than a year of reducing worldwide inventories.

U.S. West Texas Intermediate (WTI) crude futures fell $1.15 to settle at $66.73 a barrel, a 1.7 percent loss. Brent crude futures settled up 9 cents to $75.39 a barrel. Brent has fallen about 6 percent since hitting $80.50 on May 17, its highest since 2014.

Falling stocks and a stronger U.S. dollar index also weighed on prices. U.S. stock markets sank more than 1 percent, while the dollar gained about 0.7 percent.

On trading strategy, U.S. crude is expected to recover some losses in the near term under the support of the 100-day moving average of $65.29, and as the panic sentiment has been unleashed.

Copper

LME copper finished down 0.4 percent at $6,859 a tonne. The metal remained rangebound in a narrower band, and is expected to trade between the 100-day moving average of $6,947 and the 200-day moving average of $6,586 in coming sessions.

Soybean

Chicago Board of Trade July soybeans fell 11 cents on Tuesday at $10.30-1/2 a bushel, as U.S. trade tensions with China, the world's biggest soybean importer, re-emerged. CBOT July soymeal fell $0.10 to $380.20 per ton. CBOT July soyoil slid 0.13 cents to 31.21 per pound. Soybean dropped after the United States said it will continue pursuing action on trade with China, days after Washington and Beijing announced a tentative solution to their dispute and suggested that tensions had cooled.

Dealing Room, ICBC Beijing Branch
                        Huang Han