I. Precious Metals
Gold
Gold retreated on Wednesday from the previous day's eight-week high as the U.S. Labor Department said its Consumer Price Index rose 0.3 percent last month and 2.1 percent in the 12 months through December, the biggest year-on-year gain since June 2014. We expect a lot more aggressive rate hikes from the Fed in response to already rising inflationary pressures. Higher rates would boost the dollar and weigh on gold.
Data showing a pick-up in U.S. consumer prices lifted the dollar and U.S. Treasury yields. Gold prices extended losses after the Federal Reserve's latest Beige Book pointed to a jump in manufacturing and tight labor markets showing U.S. economic health. Still, uncertainty over Trump's policies ahead of his swearing-in on Friday is keeping the metal underpinned.
On chart, the MACD and momentum index still point to a strong gold with strong support at the key mark of $1,200. Bullion can find resistance at the 50 percent Fibonacci retracement of $1,230.50 since last November.

Silver
Silver pulled back along with gold, after rising to a two-month high at $17.33. But the MACD and momentum index still suggest a bullish tone with near-term resistance at the 50 percent Fibonacci retracement of $17.40 since last November and support at $16.80.

II. Commodities
Crude Oil
Oil prices fell on Wednesday to their lowest in a week, on a strong dollar and expectations that U.S. producers would boost output even as OPEC's output fell from a record high. OPEC's monthly report also said U.S. output could rebound as higher oil prices following supply cuts by other producers support increased shale drilling. Prices failed to bounce back even after data from the American Petroleum Institute (API) showed that U.S. crude stocks decreased sharply.

Copper
Copper steadied on Wednesday after its biggest fall in a month in the previous session. Also bolstering prices were LME-registered inventories, which fell another 1,335 tonnes bringing their decline since a mid-December peak to 69,425 tonnes. Benchmark copper closed up 0.3 percent at $5,769 a tonne at the London Metal Exchange.

Soybean
U.S. soybean futures rose on Wednesday for a fourth straight session, notching a six-month high on worries that recent heavy rains could damage crops in Argentina. Chicago Board of Trade March soybeans settled up 5-3/4 cents at $10.75 per bushel after reaching $10.80, the contract's highest level since mid-July. CBOT March soymeal was up $2.30 at $351.10 a tonne. CBOT March soyoil firmed 0.02 cents at 35.58 cents, underperforming in the soymeal/soyoil spread trading.

Dealing Room, ICBC Beijing Branch
Yang Hui