I. Precious Metals
Gold
Gold slipped 0.85 percent at $1,231.03 an ounce on Thursday after robust U.S. economic data increased the likelihood that the Federal Reserve will raise U.S. interest rates. U.S. President Donald Trump plans to announce ambitious tax reform plan in the next few weeks, sending the dollar higher. The number of Americans filing for unemployment benefits unexpectedly fell last week to near a 43-year low, amid a further tightening of the labor market that could eventually spur faster wage growth. Inventories at wholesalers surged in December for a second straight month and sales recorded their biggest increase since 2011, signs of confidence in the economy as domestic demand strengthens. The dollar index and U.S. Treasury yields rose after the data. Chicago Fed President Evans said it is reasonable to expect the Federal Reserve to raise interest rates three times this year. In a White House meeting with airline executives, Trump promised a "phenomenal" tax plan, but offered no specifics. Trump promised to boost U.S. economy in the presidential campaign by large fiscal measure, including spending expansion and tax cut. Adding support to prices, SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, increased its bullion holdings for a sixth day on Wednesday.
On technical front, some investors were cashing in their bets on higher prices with gold striking $1,244.67, its highest since Nov. 11, on Wednesday. The upward momentum remains intact in the medium term with support and reversion level at the 100-day moving average of $1,220.

Silver
Spot silver fell by 0.9 percent to $17.62 an ounce, keeping tracking gold. On chart, silver extended losses as it reversed the upturn course after hitting the 200-day moving average, drawing near to the support of $17.5. In view of the Bollinger path, the white metal had been climbing along the upper end, and may test the middle band after recent correction. It is expected to fall to $17.3. Investors shall wait and see for further signs.

II. Commodities
Crude Oil
Oil prices held onto gains on Thursday. Benchmark Brent crude settled up 51 cents at $55.63 per barrel. U.S. light crude settled 66 cents higher at $53 a barrel. The U.S. Energy Information Administration (EIA) said on Wednesday gasoline inventories fell by 869,000 barrels last week to 256.2 million barrels, versus analyst expectations for a 1.1 million-barrel gain. The fall in gasoline stocks suggested U.S. consumption was stronger than expected, and may be healthy enough to support prices. But it was insufficient to knock the market out of its range-bound trade, limited between production cuts from OPEC and brimming U.S. crude stockpiles. The discount for March futures relative to April narrowed to 47 cents a barrel on Thursday, the strongest level since October, as traders eyed growing exports. The EIA report also said U.S. commercial crude inventories rose by 13.8 million barrels to 508.6 million High fuel inventories and rising U.S. crude production meant oil markets would be over-supplied for some time. As a result, oil is expected to continue to consolidate.

Copper
Three-month copper on the London Metal Exchange closed down 1.2 percent at $5,822 a tonne, as a bounce in the dollar and concerns over whether the supply and demand backdrop justified its recent rally sparked profit-taking, but prices remained underpinned by the threat of supply disruptions. Workers at the world's largest mine in Chile went on strike on Thursday, with the union saying that night workers would not be replaced. In Indonesia, Freeport-McMoRan Inc's Grasberg mine has yet to be granted a new export permit. We think copper is trading at the upper end of its fundamentally justified range, and that prices look excessive at current levels. Copper remained supported, however, by a threats to supply. Sharp downside risks in prices appear unlikely in near term.

Soybean
U.S. soybean futures fell from a two-week high in the wake of the USDA report in which the government kept its U.S. soy ending stocks forecast steady at 420 million bushels, higher than analysts’ forecast of 410 million. Brazil's Conab revised up its estimate on Brazilian soy output to a record of 105.6 million tonnes from 103.8 million in January. After the data, Chicago Board of Trade March soybeans settled down 8-1/4 cents at $10.50-1/2 per bushel. CBOT March soymeal futures shed $2.8 at $338.4 a tonne. CBOT March soyoil futures closed down 0.02 cents at $34.67 per lb. Traded volumes of soybean, soymeal and soyoil were expected to stood at 266,446 lots, 130,797 lots, and 125,284 lots respectively.

Dealing Room, ICBC Beijing Branch
Lv Yan