I. Precious Metals
Gold

Gold dipped in choppy trading on Friday as traders cashed in gains from the metal's rally to 3-1/2-month highs this week and as the dollar rose even after weaker-than-expected U.S. payrolls data for December.

North Korea agreed on Friday to hold official talks with South Korea next week, the first in more than two years, cooling safe-haven sentiment. Spot gold was down 0.2 percent at $1,319.59 an ounce, off Thursday's high of $1,325.86. It was still up 1.3 percent from last week's close.

The daily chart formed a cross star, showing cautious sentiment. Market bet that the dollar will weaken this year. But the dollar index was supported above 91.5, keeping the gold’s upward momentum in check. A correction is expected in near term. On trading strategy, investors are recommended to stay on the sidelines.

Silver

Silver was down 0.1 percent at $17.22 an ounce earlier touching its highest point in more than six weeks at $17.29, and 1.6 percent higher for the week. On chart, silver hovered below the resistance of $17.3-$17.4 with its gains slowing down. The cross-star pattern formed yesterday showed lack of direction for coming sessions.

Whether a upward path can be opened shall be determined by effective breakthrough to the above-mentioned resistance. Investors are recommended to remain cautious.

II. Commodities
Crude Oil

Oil prices fell on Friday, dropping from highs last seen in 2015, as soaring U.S. production undermined a 10 percent rally from December lows that was driven by tightening supply and political tensions in OPEC member Iran. West Texas Intermediate crude futures fell 57 cents to settle at $61.44 a barrel. Brent crude futures for March delivery fell 45 cents, or 0.7 percent, to $67.62 a barrel.

In this weeks, political tensions in Iran had pushed prices higher. But the gaining pace was slowing down, showing weakening upward momentum. U.S. Production surged to 9.78 million barrels per day (bpd) in the latest week, within striking distance of the 1,000 bpd mark, according to Wednesday's report.

On fundamentals, relieved tensions in Iran, resumed operations in Forties, Britain’s biggest and most important oil pipeline, and a major oil pipeline in Libya, will weigh on oil. On trading strategy, investors are recommended to cash in their profits in long positions, and build short positions at highs. But stop-profit and stop-loss shall be set appropriately.

Copper

Three-month copper on the London Metal Exchange ended down 1 percent at $7,120 a tonne, after gaining 7 percent in December. For this week, copper dipped from highs, posing sharp losses on Friday. Judging from this week’s performance, copper is expected to see correction with a bearish outlook. Support can be found at the 38.2 retracement of 7,050. Investors shall closely watch the base metal’s test on the level.

Soybean

U.S. soybean futures rose on Friday, with traders focused on the South American weather outlook. Chicago Board of Trade March soybean futures settled up 3 cents at $9.70-3/4. But soybean still hovered around the 200-day moving average without an effective breakthrough. Investors shall closely watch the movement around the resistance.

Dealing Room, ICBC Beijing Branch
                        Qin Gang