I. Precious Metals
Gold
Gold prices fell on Wednesday as investor appetite for riskier assets such as equities and crude oil recovered slightly, denting demand for bullion, often considered a safe haven. Spot gold fell 0.6 percent to $1,265.75 an ounce. In the previous session, it hit $1276.67, its highest since Oct. 5. Earlier in the session, gold was stronger as disappointing results and forecasts from major U.S. companies continued to weigh on the European and Asian stocks. Mixed results from Europe's banking sector and declines in mining and energy shares pushed the pan-European index lower. Gold prices fell again as stocks rebounded on changing risk appetite.
On chart, gold closed at $1,265.90 an ounce on Wednesday, paring all gains recorded yesterday. It still hovered around the 200-day moving average of $1,272.27, with resistance at around $1,276 in near term. Investors may closely watch the movement around this level. A breakthrough may break the rangebound pattern, and trigger an upturn trend. The level of $1,250 may continue to provide a floor.

Silver
Silver fell over 1 percent at $17.63 an ounce on Wednesday, snapping its 3-day winning streak. On chart, silver remained rangebound with support at the 200-day moving average of $17.39 in near term.

II. Commodities
Crude Oil
Oil settled down more than 1 percent on Wednesday even after a surprise drawdown in U.S. crude inventories, as traders remained cautious that OPEC would be able to cut production come late November. U.S. crude stockpiles fell 553,000 barrels last week, the U.S. Energy Information Administration (EIA) said, compared with the 1.7 million-barrel build analysts polled. Crude inventories in the world's largest oil producer have fallen unexpectedly in seven of the past eight weeks, bucking the usual autumn trend in which stockpiles rise as refineries go into maintenance season. Oil prices pared losses after the EIA data, with U.S. crude briefly trading in positive territory and Brent returning above $50 a barrel. But the rebound was limited by doubts about whether the Organization of the Petroleum Exporting Countries (OPEC), which meets Nov. 30, will succeed in its planned production cut. The focus point from here remains on the OPEC meeting that comes a month from now, with Iran, Libya and Nigeria all looking unlikely to commit to output cuts. Brent crude was down 81 cents, or 1.6 percent, at $49.98 a barrel. It fell as low as $49.65, its lowest since Sept. 30. U.S. West Texas Intermediate (WTI) crude slid 78 cents, or 1.6 percent, to $49.18. Its session low was $48.87, its lowest since Oct. 4.

Copper
Copper steadied after the previous session's strong gains, underpinned by a lower dollar. Benchmark copper closed up 0.1 percent at $4,740 a tonne, following a 2.1 percent advance in the previous session on talks of further fiscal stimulus by top consumer China, which could lift demand for most metals. Prices hit a two-week peak at $4,754 in earlier trade. China is expected to step up copper imports in the coming months as a weaker yuan opens up arbitrage opportunities and demand picks up, partly fuelled by a boom in China's property market, analysts and traders said. Analysts predicted that full-year copper output would be at the lower end of guidance, and production next year would still be low.

Soybean
U.S. soybean future rose on Wednesday, lifted by investment fund buying, technical buying, a weaker dollar, and uncertainties in the Federal Reserve policy that drove funds into commodities market. CBOT November soybean futures settled 19-1/4 cents higher at $10.10 per bushel, after hitting $10.11, the highest since Aug. 24. South American weather uncertainty also supported prices of soybean futures. Other factors underpinning soybean prices include ongoing planting in South America, harvest halting due to rainfall in the Midwestern America, and USDA report that soybean harvest was 76 percent complete in the week to October 23. Spot spread for soybeans shipping to the Mexico Gulf was slightly up as harvests neared completion.

Dealing Room, ICBC Beijing Branch
Li Nan

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