I. Precious Metals
Gold
Gold fell for the third straight session on Monday, reaching a 5-1/2-month low as the dollar and Treasury yields strengthened on expectations that President-elect Donald Trump will boost U.S. spending and cut taxes. Investors also reinforced their bullish expectations over the dollar and Treasury yields, sending the dollar index above the key mark of 100 and keeping gold under pressure. Trump’s hawkish tone on the Federal Reserve' monetary policy also grew the case for the U.S. central bank to raise interest rates in December, also a weight on bullion. On technical front, the downward pressure on gold has been weakened with support from $1,200 once again. Bullion is expected to consolidate at around this level. Uncertainty about international risk events such as the Austrian presidential election and the Italian constitutional referendum next month could have an impact on risk appetite of the wider markets, making it possible for a rebound in a foreseeable future.

Silver
Silver fell 3.3 percent to its lowest since June at $16.61 an ounce, tracking gold's downside. On chart, silver closed at around $17, forming a long down shadow line, which indicates the support of bargain-hunting. The white metal is expected to steady in the future.

II. Commodities
Crude Oil
Oil prices were slightly up on Monday, snapping a two-day decline. OPEC kingpin Saudi Arabia and fellow exporters Iran and Iraq have been at odds over how to rein in supply to reduce a glut in global markets, casting doubt on the ability of the OPEC members to resolve their differences in the output policy meeting on Nov. 30 in Vienna. This put pressure on benchmark prices. Oil, however, steadied after Qatar, Algeria and Venezuela were leading the push to overcome the divide between the group's biggest producers. On technical front, both Brent and U.S. crude hovered around the 200-day moving average of $45.53 and $43.55 respectively, a trend expected to sustain in near term.

Copper
Copper extended gains Monday on bullish expectations over demand from top metals consumer China. Official Chinese data showed that fixed-asset investment quickened slightly in January-October as the government stepped up spending to support growth. Technically, the tailwind, however, cannot provide sustainable support to copper prices. The base metal is expected to pull back later on.

Soybean
U.S. soybean futures settled lower on Monday after a sell-off in Chinese soy futures, joining a broad decline in commodities as the dollar roared. But soybean managed to close above session lows, buoyed by export demand and higher soymeal. CBOT January soybeans finished down 1-3/4 cents at $9.84-1/4 a bushel after notching a four-week low at $9.75-1/4. CBOT soymeal futures also rose, outperforming soyoil in spread trading. Soyoil fell partly as Malaysia palm oil tumbled around 4 percent.

Dealing Room, ICBC Beijing Branch
Yang Hui

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