I. Precious Metals
Gold
Gold prices rose 1 percent to their highest in more than two weeks on Thursday as U.S. bond yields declined on waning risk appetite, reducing the U.S. dollar's appeal against safe-haven currencies such as the Japanese yen. Bullion regained the ground of $1,150, providing a floor to gold prices. A drop in U.S. exports last month pushed the country's trade deficit in goods higher while the number of Americans filing for unemployment benefits fell last week in a positive sign for the labor market. The two reports released on Thursday suggested that when Donald Trump becomes America's president next month, the labor market will likely be at roughly full strength and international trade could be weighing on the economy. Gold fell more than 8 percent in November as U.S. Treasury yields rose after Donald Trump's election led to speculation his commitment to infrastructure spending would spur growth. The U.S. central bank has signalled that it expected three more increases next year, up from a previous projection of two. All these elements kept gold under pressure in the medium and long term.
On technical front, gold closed in the positive territory for five sessions in a row. The upside momentum column is expected to expand as the opening of the MACD index widening. In the near term, gold is expected to extend its strength. The next target is $1,168 after crossing above $1,150.

Silver
Silver extended gains in its fourth consecutive day, hold above the key mark of $16. Technically, silver underperformed gold, showing its weaker risk appetite. , in the meanwhile, the MACD index turned positive, but its lower strength might curb its upside momentum. Investors shall keep an eye on the resistance of $16.50.

II. Commodities
Crude Oil
Oil futures dipped on Thursday after a surprise build in U.S. crude inventories reversed an advance in prices that had boosted the benchmarks to their highest levels since July last year. U.S. crude stocks unexpectedly rose for the second straight week, data from the U.S. Energy Information Administration showed, gaining 614,000 barrels last week versus analysts' forecasts of a decline of 2.1 million barrels. U.S. crude futures settled 29 cents, or 0.5 percent, lower at $53.77 a barrel while Brent crude fell 8 cents, or 0.1 percent, to $56.14 a barrel. Traded volumes were thin. Front month U.S. distillate and gasoline futures expire on Friday, which could add to price swings. The market is in good shape although it might fail to make significant advances this year. The uptrend should continue in early January.

Copper
Copper prices were softer on Thursday alongside equities in thin holiday trade as markets fretted about the higher dollar and the potential for a liquidity crunch in top consumer China. Benchmark copper on the London Metal Exchange ended 1 percent down at $5,487 a tonne, though still up from last week's one-month low of $5,419.50. But copper is on course for a gain of about 17 percent this year, which would be the first annual rise since 2012, mainly owing to better than expected demand in China and hopes of rising demand resulting from U.S. spending on infrastructure. In the near term, the demand in China will dominate the market.

Soybean
U.S. soybean futures fell for the second consecutive day on Thursday in technically driven trade and improved prospect for crop harvest in South America. Most-active March soybeans closed 3-3/4 cents lower at $10.12-3/4. Easing concerns about crop weather in South America boosted expectations for soybean harvest. Soybean prices may kept under downside pressure in this anticipation. The trading volume of the CBOT soybean, soymeal and soyoil was expected at 147,712 lots, 84,543 lots and 84,472 lots respectively.

Dealing Room, ICBC Beijing Branch
Cheng Yu