I. Precious Metals
Gold
Gold fell to its lowest price in 10 months on Monday as global equities strengthened and investors shrugged off worries of political instability in Italy after a crushing defeat in a referendum on constitutional reform. U.S. Treasury yields rose as the Institute for Supply Management said the pace of growth among domestic services industries accelerated more than forecast in November, pulling more funds into the dollar asset, while sending gold further down. Gold can hardly see any remarkable rally due to the high expectations on interest rate hike by the Federal Reserve policy meeting this week. But its losses can also be limited considering its current level well below $1,200. The impasse cannot be broken until the Fed’s meeting.

Silver
Spot silver dropped 0.1 percent, tracking gold’s trajectory. On chart, the 50-day moving average has crossed below the 200-day moving average, potentially forming a death cross, a technically bearish formation. The key mark of $17 will continue to impose effective resistance.

II. Commodities
Crude Oil
U.S. and Brent crude futures strengthened on Monday. But the market lost some confidence since the Organization of the Petroleum Exporting Countries' agreement was struck on Wednesday. The rally halted on Monday as investors shifted their focus to rising drilling and rose doubts that non-OPEC producers will line up to pledge their own reductions along with the OPEC members. On chart, a long upper and lower shadow line were formed, indicating a balance between bulls and bears.

Copper
Three-month LME copper climbed 3.3 per cent to end at $US5,950 a tonne. A slide in the dollar and buying by computer-driven funds helped to push zinc, copper and other base metals higher on Monday. Copper and other metals were supported by a private survey showing growth in China’s services sector accelerated to a 16-month high in November. But the tailwinds were short lived and not sufficient to keep copper prices at highs.

Soybean
U.S. soybean futures rose 1.5 percent on Monday, as healthy overseas demand triggered buying from investing funds. Chicago Board of Trade January soybean futures settled up 16 cents at $10.43-1/2 a bushel. Soymeal futures also rose with the benchmark January contract meeting resistance at the 200-day moving average after crossing above the 20-day, 30-day and 100-day moving average. Soyoil futures also fell as investors cashed in profits after its prices approached a 2-1/2-year high.

Dealing Room, ICBC Beijing Branch
Yang Hui

Note: The information herein is provided for informational purpose only. You are liable for the risk incurred to the investments based on this information provided herein.