I. Precious Metals
Gold
Spot gold extended gains for the fourth consecutive day, up 0.06 percent at $1,286.84 an ounce, having earlier hit its strongest since early November at $1,288.64 an ounce. Gold prices eased from highs on Thursday as the dollar rebounded from a slide triggered by comments from U.S. President Donald Trump that the greenback was too strong and that he would prefer the Federal Reserve keep interest rates low. The metal was pushed up on geopolitical tensions, on track for its biggest weekly gain since June. We think that gold prices could fall back in the near term if tensions cool. Despite sending a naval force to the Korean peninsula, the Trump administration is focusing its North Korea strategy on tougher economic sanctions, possibly including an oil embargo, banning its airline, intercepting cargo ships and punishing Chinese banks doing business with Pyongyang. U.S. forces in Afghanistan on Thursday struck the largest non-nuclear weapon ever used in combat by the U.S. military, escalating tensions in Syria and North Korea. U.S. market will be closed on Friday for the long Easter holiday weekend.
On technical front, gold retains steam to test the key mark of $1,300, but is less likely to extend its winning steak as yesterday’s gains were almost erased. The resistance at $1,300 is heavy.

Silver
Silver was up 0.3 percent at $18.52, off a five-month high of $18.599 earlier in the session. On chart, the metal is still supported by the 50-week moving average with the medium-term resistance at $18.50. The weekly MACD shows prices would steady at highs. Silver is expected to rise in the medium and longer term boosted by a golden cross if it could cross over the resistance range between $18.50 to $18.80 on weekly chart.

II. Commodities
Crude Oil
Benchmark Brent crude futures settled up 3 cents to $55.89 a barrel after touching a one-month high on Wednesday. U.S. West Texas Intermediate crude futures settled up 7 cents at $53.18 a barrel. Both benchmarks were set for a third consecutive weekly gain. World supply and demand were nearing balance in the second half of this year on multiple factors. The U.S. oil rig count rose to its highest level in two years, threatening the rebalancing of markets. Energy services firm Baker Hughes said on Thursday that drillers added 11 oil rigs in the week to April 13, bringing the total count up to 683. The number of U.S. rigs has increased for 13 consecutive weeks, threatening the output-cut efforts by the Organization of the Petroleum Exporting Countries and some non-OPEC producers in the first six months of 2017. OPEC meets on May 25 to consider extending the cuts beyond June. Saudi Arabia, Kuwait and most other OPEC members are leaning towards this if agreement is reached with other producers. OPEC data showed members of the group had cut March output beyond the level they had promised.

Copper
Copper prices rebounded from their lowest level in three months on Thursday. Benchmark copper on the London Metal Exchange closed 1.1 percent lower at $5,692 tonne, after falling to its lowest since Jan. 10 in the previous session. China's 2017 export outlook brightened considerably after it reported forecast-beating trade growth in March and U.S. President Donald Trump softened his anti-China rhetoric in an abrupt policy shift. China's imports of copper rose 26.5 percent from month ago to 430,000 tonnes in March, data from the General Administration of Customs showed. U.S. President Donald Trump may have decided not to declare China a currency manipulator and said the dollar "getting too strong" would hurt U.S. Economy. Copper support seen at Wednesday's low around $5,600/15, a breach could see a test of $5,500. Resistance seen at $5,800 near the 100-day moving average. LME will be closed on Friday and Monday for the Easter holiday. Losses amounting to hundreds of millions of dollars appear to be pushing Indonesia and miner Freeport McMoRan to resolve a row that has crippled operations at Grasberg for three months. Chile, the world's biggest copper producer, faces a fresh threat of labour action when a union at the large Chuquicamata mine said it had blocked access as a "warning" over planned changes to job opportunities.

Soybean
U.S. soybean futures rose on Thursday. Chicago Board of Trade May soybean futures settled up 7-3/4 cents at $9.55-1/2 per bushel after notching a one-year low Tuesday at $9.29-3/4. CBOT May soymeal closed up $4.80 at $317.50 per short tonne on bargain buying after the front contract this week fell to its lowest level in six months. CBOT May soyoil fell 5 cents to 31.19 cents per lb, losing against soymeal on meal/oil spreads. The National Oilseed Processors Association (NOPA) will release its monthly crush report on Monday. The USDA reported weekly export sales of old-crop US soybeans at 402,200 tonnes, at the low end of trade expectations, and new-crop sales at 124,700 tonnes, below expectations. The CBOT will be closed on Friday. The trading volume of soybean, soymeal and soyoil is expected at 246,527, 199,567, 150,259 lots respectively.

Dealing Room, ICBC Beijing Branch
Lv Yan