I. Precious Metals
Gold

Gold steadied around a 3-1/2-month high on Thursday as skepticism over the prospect of further U.S. interest rate increases and tax overhaul’s boost to inflation put the brakes on a recent rally. Spot gold rose 0.5 percent to $1,319.74 an ounce.

On fundamentals, no news could pull gold down in the near term, despite of its overbought positions in this wave of rally. A weaker dollar against other major currencies also provided a floor.

Market expected a 70 percent probability of an interest rate hike in March. But minutes from the Federal Reserve still showed policy makers’ concern over inflation. A clear roadmap on this year’s interest rake hike path still need more clues from the U.S. central bank, and further support from economic data. Short trading is not recommended as gold’s gains are expected to slow down or consolidate. On trading strategy, investors shall stay on the sidelines.

Silver

Silver rose 0.3 percent to $17.24 an ounce on Thursday, hitting an eight-week high of $17.26. But it still hovered below the resistance of $17.3-$17.4 with its gains slowing down. The chart showed lack of clues for future direction. Investors are recommended to be cautious in anticipation of a pullback in near term.

II. Commodities
Crude Oil

Oil rose on Thursday to its highest since May 2015, on concern about supply risks due to unrest in Iran and another decline in U.S. inventories as refining activity hit a 12-year high.

Brent crude, the international benchmark, settled up 23 cents at $68.07 a barrel after hitting a high of $68.27 earlier in the session. U.S. crude settled up 38 cents at $62.01, after earlier hitting $62.21, its highest since May 2015.

U.S. crude stocks fell by 7.4 million barrels in the last week of 2017, exceeding expectations, as refiners boosted activity to their highest rate since 2005, the U.S. Energy Information Administration said on Thursday.
Anti-government protests since last week in Iran, OPEC's third-largest producer, have added a geopolitical risk premium to oil prices, though the country's production and exports have not been affected, sources said. Investors can keep standing on the sidelines as oil prices are expected to linger at highs.

Copper

Three-month copper on the London Metal Exchange was untraded at the close but was last bid at $7,188 a tonne, up 0.6 percent. Base metals rallied across the board after upbeat Chinese data supported growth expectations in the world's biggest metals consumer. But copper is expected to pull back due to sharp gains in December.

Soybean

Chicago soybeans fell on Thursday on profit-taking after a three-day gain earlier this week. CBOT March soybeans shed 1 cent to $9.67-3/4 a bushel. The technical chart showed strong bargain-hunting without strong support at around $9.50, suggesting a upward momentum in coming sessions.

Dealing Room, ICBC Beijing Branch
                        Qin Gang

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