I. Precious Metals
Gold
Gold retreated 0.3 percent on Thursday after the dollar rebounded. The euro dropped and the dollar index against a basket of six major currencies rebounded back above 101 as the European Central Bank decided to cut its asset buying to 60 billion euros a month from next April from 80 billion euros now, and extend monthly asset purchases six months longer until next December. Gold will be kept under pressure on strengthened expectations of an interest rates hike by the Federal Reserve. On technical front, the momentum index and the MACD index still pointed to a bearish tone. The level of $1,180 constitutes an effective resistance, but the downward potentials were also limited with support at recent lows of $1,157.
 
Silver
Silver tracked gold’s falling trajectory with support at $17. The chart shows a more optimistic tone. But investors are recommended to stay on the sidelines amid overall headwinds for precious metals.

II. Commodities
Crude Oil
Oil rebounded from the week's lows on Thursday, on growing optimism that non-OPEC producers might agree to cut output. Oil producers will meet in Vienna on Saturday to see if non-OPEC countries will cut production to reduce a global supply glut that has pressured prices. By then, oil is expected to swing mildly along with market expectations.

Copper
Copper fell on Thursday as the dollar rebounded. The metal had been initially boosted by strong Chinese data, showing imports of the metal used in plumbing and wiring surging 31 percent. Three-month copper on the London Metal Exchange closed 0.1 percent lower at $5,782 a tonne.

Soybean
U.S. soybean futures dropped 2 percent on Thursday, the first decline in 4 sessions, on profit-taking tied to lower vegoil prices and extended weather outlooks for rainfall in Argentina. U.S. President-elect Donald Trump's nomination of Oklahoma Attorney General Scott Pruitt to run the nation's Environmental Protection Agency also sparked worries of reduced support for corn-based ethanol and soy-based biodiesel. Chicago Board of Trade January soybean futures shed 22 cents to settle at $10.27 per bushel, the steepest decline since September 23. January soymeal futures fell $6.8 at $313.7 a tonne. January soyoil futures closed down 67 cents at 37.26 cents.

Dealing Room, ICBC Beijing Branch
Yang Hui

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