I. Precious Metals
Gold

Gold edged lower on Monday, retreating further from last week's 3-1/2-month high as the U.S. dollar regained some ground against the buoyant euro and traders bet on further U.S. interest rate hikes after Friday's payrolls data.

The dollar, which has remained weak after its biggest annual drop since 2003, had helped to lift assets priced in the U.S. currency, with gold last week registering a fourth straight weekly gain for the first time since April.

Market participants are awaiting the Federal Reserve’s statement on interest rates hike and U.S. Consumer Price Index (CPI) data later this week, which are expected to show inflation likely increased 0.2 percent in December after rising 0.1 percent in November.

On chart, gold is losing some steam and is approaching the Fibonacci 23.6% retracement level at $1,322, a heavy resistance for the white metal. Gold is expected to see a correction in the near term with support at $1,300 to $1,302.

On trading strategy, investors are recommended to stay on the sidelines. While those with net long positions may consider cash in profits and rebuild positions after it pulls back.

Silver

Silver was down 0.7 percent at $17.11 an ounce, having hit a 1-1/2-month high of $17.29 on Friday. Last week, it rose 1.6 percent. Currently, silver still hovered below the resistance of $17.3-$17.4, and pulled back for the second straight day.

Considering that gold is expected to remain rangebound in near term, the 100-day and 200-day moving average will continue to provide support. On trading strategy, investors are recommended to stay on the sidelines.

II. Commodities
Crude Oil

Oil prices were little changed on Monday, trading near their highest since May 2015, as political concerns in some OPEC nations offset projections for higher U.S. oil production.

Brent futures gained 16 cents, or 0.2 percent, to settle at $67.78 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 29 cents, or 0.5 percent, to settle at $61.73. Last week, both contracts rose to their highest since May 2015 with Brent at $68.27 and WTI at $62.21.

However, prospects for relieved tensions in Iran and further increases in U.S. oil production continue to promote bearish sentiment. On trading strategy, investors are recommended to cash in profits in long positions, and build short positions at highs. But stop-profit and stop-loss shall be set appropriately.

Copper

Copper hit a two-week low on Monday, weighed down by a stronger dollar and as the market consolidated following sharp gains in December.

The dollar rose against the euro, making dollar-priced metals costlier for non-U.S. investors, while world stocks were near all-time highs as the best start to a year in eight years showed little sign of abating.

LME copper ended up 0.1 percent at $7,125 a tonne, having hit its lowest in two weeks at $7,105. Prices on Dec. 28 topped out at $7,312.50 a tonne, the highest since January, 2014.

Soybean

U.S. soybean futures fell on Monday, dented by profit-taking after hitting a three-week high last Friday, and position adjustment ahead of government report on supply and demand.

The U.S. Department of Agriculture on Monday said about 1.2 million tonnes of U.S. soybeans were inspected for export in the latest week. The agency also said that Egypt bought 120,000 tons of US Soybeans and unknown Destinations bought 132,000 tons of US Soybeans. CBOT March soybeans were off 4 cents to $9.66-3/4.

Dealing Room, ICBC Beijing Branch
                        Li Nan