I. Precious Metals
Gold

Gold prices fell 0.1 percent to $1,243.46 an ounce, trading within a tight range of 0.8 percent. Global markets are watching the U.S. central bank's two-day meeting for clues about the Fed's future rate path, showing no spotlight throughout the session except some trading opportunities on the hourly chart.

Technical front, gold remained weak but with resilient support, suggesting that it’s not a good time for bargain hunting. But things are different considering a widely expected U.S. interest rate increase this week.

But the rate hike does not foresee Fed's future rate path, that can only be determined till the new Fed Chair takes office. That means what matters is not what outgoing Fed Chair Janet Yellen said in the meeting, but what she leaves to the new Fed Chair. Yellen is expected to make a hawkish statement tonight. We need to closely watch gold’s movement shortly after her speech. If it falls slightly at a moderate pace, current prices can be determined as a safe level for bargain hunting.

Silver

Silver inched up 2 cents at $15.72 an ounce, consolidating after a four-day decline. We also need to closely watch its first response to U.S. interest rate hike. Investors don’t have to worry as long as there’s no sharp losses. In case that does happen, investors need to wait till the close to determine the length of the lower shadow line.

II. Commodities
Crude Oil

Oil prices fell sharply on Tuesday, as traders took profits. Brent crude settled down $1.35, or 2 percent, at $63.34. U.S. crude settled down at $57.14 a barrel. Selling picked up after the U.S. Energy Information Administration said in its monthly short-term energy outlook that U.S. crude oil output will rise by 780,000 barrels per day (bpd) to 10.02 million bpd in 2018.

Crude prices are unlikely to set new record highs due to the gains in the past six months. Buying is not recommended as crude is expected to either rise after consolidating at highs for an extended period, or rise after pullback.

Copper

Copper prices ended down 0.1 percent at $6,663 on caution ahead of a widely expected U.S. interest rate increase this week. Investors shall be more cautious about copper’s losses as the weak momentum will extend.

Soybean

Chicago Board of Trade January soybeans settled down 6-3/4 cents at $9.75-3/4 a bushel on Tuesday on improving weather in Argentina and rising estimates of Brazil's soybean crop. January soymeals were down $3 at $324.7 per short tonne. December soyoil ended down 0.01 cent at 33.45 cents per pound.

Dealing Room, ICBC Beijing Branch
                        Zhao Yifei

Note: The information herein is provided for informational purpose only. You are liable for the risk incurred to the investments based on this information provided herein.