I. Precious Metals
Gold
Gold rose to a two-month high on Monday, as unease over the economic policies of U.S. President Donald Trump pushed investors towards safer assets while the dollar and U.S. bond yields fell. Trump formally withdrew the United States from the Trans-Pacific Partnership trade deal and told U.S. manufacturing executives he would impose a hefty border tax on firms that import products after moving American factories overseas. The U.S. dollar fell to a seven-week low against a basket of key world currencies and global stock markets declined amid investor concerns over Trump's protectionist rhetoric. A weaker dollar makes gold cheaper for holders of other currencies, while lower yields reduce the opportunity cost of holding non-yielding bullion. Spot gold was up 0.6 percent at $1,216.33 an ounce, after tapping $1,219.43, its highest since Nov. 22. U.S. gold futures settled up 0.9 percent at $1,215.6 per ounce.
On technical front, gold extends its gains and retains its steam in near term. The yellow metal would find support at $1,210, $1,200 and $1,180, and resistance at the 50 percent Fibonacci retracement of $1,230 since last November and the 100-day moving average of $1,235 successively.

Silver
Silver tracked gold, up a modest 0.6 percent to $17.22 an ounce. On chart, it has breached previous resistance of $17, unleashing its upward momentum. Market bulls are expected to take an upper hand in near future. But its gains could be limited as the 100-day moving average moves down. The resistance can be found at $17.50.

II. Commodities
Crude Oil
Oil prices fell 1 percent on Monday as signs of a strong recovery in U.S. drilling largely overshadowed news that OPEC and non-OPEC producers were on track to meet output reduction goals. Ministers representing members of the Organization of the Petroleum Exporting Countries and non-OPEC producers said at a meeting in Vienna on Sunday that of the almost 1.8 million barrels per day (bpd) they had agreed to remove from the market starting on Jan. 1, 1.5 million bpd had already been cut. Brent crude settled down 26 cents, or 0.5 percent, at $55.23 a barrel. U.S. crude futures closed the session at $52.75 a barrel, down 0.9 percent, or 47 cents.

Copper
Copper rose on Monday, buoyed by dollar weakness and hopes that U.S. President Donald Trump's incoming administration would make good on a pledge to boost infrastructure spending in the world's largest economy. In his inauguration speech on Friday, Trump said his administration would "build new roads, and highways, and bridges, and airports, and tunnels, and railways all across our wonderful nation". However he did not go into specifics, and there was no mention of plans to outlay $1 trillion in spending over a 10-year period that were part of his election campaign. Three-month copper on the London Metal Exchange closed up 0.8 percent at $5,795 a tonne. The red metal used in construction has rallied 14 percent since the Nov. 8 election saw Trump voted into office on the back of promises to cut taxes and boost spending. Meanwhile, the Lunar New Year holiday, starting Jan. 27, is expected to subdue metals demand this month as Chinese factories close, sometimes for two to three weeks.

Soybean
Chicago soybeans slid for a third straight session on Monday as investors cashed in profits below this week's six-month high, and the weather in Argentina got better, traders said. The Chicago Board of Trade soybean contract for March delivery declined 9-3/4 cents to $10.57-3/4 a bushel. Forecasts of dry weather in Argentina's flooded crop areas eased concerns over harvest losses in the major exporter. Argentina is expected to experience hot and dry conditions this week. That pattern should allow for flooded regions to dry out more quickly.

Dealing Room, ICBC Beijing Branch
Li Nan