I. Precious Metals
Gold
Gold prices recovered on Thursday from the more than one-week low they had reached overnight, with support from the key mark of $1,280.
News front, Politico reported that President Donald Trump was favoring Powell among a handful of candidates he has recently vetted. Powell, recommended to the president by Treasury Secretary Steven Mnuchin, is seen as less hawkish than Stanford economist John Taylor and former Fed Governor Kevin Warsh. Market strategists say Powell is more inclined to keep interest rates at low, which will lower the dollar’s value to investors.
The number of Americans filing for unemployment benefits dropped more than expected. But the upbeat data failed to provide much support to the U.S. currency. The dollar index further weakened, lifting bullion prices.
Technical front, gold was supported at the 100-day moving average of $1,280 that still retain its steam, although at a slower pace, suggesting upward momentum in coming sessions. The MACD index also points to a bullish sign. Further gains can be expected if gold could hold above the 50-day moving average of $1,300 in the near term.

Silver
Silver regained the ground of the 50-day and 200-day moving average, suggesting strong momentum in the near term. Technically, its support remained on track with its bottom rising, pointing to retaining steam.
In the near term, investors shall closely watch the movement at $16.50. In case of breach, investors shall square their long positions. The resistance can be found at previous highs at $17.50. We maintained our view that silver will keep testing the key mark of $18.

II. Commodities
Crude Oil
Oil prices fell more than 1 percent on Thursday, breaking four days of gains, pressured by larger-than-expected product inventories in the United States and profit-taking after a recent run-up in markets.
Brent crude settled down 92 cents, or 1.6 percent, at $57.23 a barrel. The global benchmark is still about 30 percent above its mid-year levels. U.S. light crude settled down 75 cents, or 1.4 percent, to $51.29, but is still nearly 25 percent higher than June's lows.
Ongoing tension in the Middle East has boosted prices, but analysts say those concerns may now be priced into the market. Iraq said it expects to restore Kirkuk's oil production to last week's levels by Sunday. We maintain our view that oil prices are expected to hold above $50 in the near term, but with limited gains.

Copper
Copper prices fell for a third straight day on Thursday. Investors have taken profits after copper rallied on Monday above $7,000 a tonne for the first time since September 2014.
Benchmark copper on the London Metal Exchange closed 0.3 percent down at $6,967 a tonne, taking losses since Monday's high of $7,177 to nearly 3 percent. Support was at $6,900 in the near term.
Growth in the world's biggest metals market looked set to accelerate this year, but efforts to cut risks in property and debt were beginning to weigh. Industrial output in September rose by a faster than expected 6.6 percent year on year and fixed-asset investment expanded by 7.5 percent in the first nine months of the year, missing forecasts of 7.7 percent.
Real estate investment in China rose 8.1 percent in January-September from the same period a year earlier, while housing sales measured by floor area rose 10.3 percent. The Chinese data was, on balance, as expected. But economists still worry that China’s economic growth may slow down. Overall, copper’s decline may be limited in the near term amid solid demand.

Soybean
U.S. soybean futures firmed on Thursday on supportive export demand and light bargain buying following a three-day slide, along with renewed optimism about demand for soy-based biodiesel fuel, analysts said. Chicago Board of Trade November soybean futures settled up 2-1/4 cents at $9.86-1/2 per bushel.
The U.S. Department of Agriculture reported the weekly U.S. soybean export sales, at 1.2751 million tonnes, fell below trade estimates of 1.30-1.70 million tonnes. But weekly soymeal and soyoil sales at 296,100 tonnes and 27,400 tonnes respectively, exceeded expectations.
The trading volume of soybean, soymeal and soyoil was expected to stand at 232,919 lots, 62,991 lots, and 78,814 lots respectively.

Dealing Room, ICBC Beijing Branch
Cheng Yu