I. Precious Metals
Gold
Gold slid 1.7 percent to a seven-week low around $1,220 on Monday as the dollar recorded its best day in four months, bolstered by higher U.S. bond yields and upbeat manufacturing activity, weighing on appetite for non-interest bearing bullion. After hawkish signals from European Central Bank and Bank of England, firmer U.S. Treasury bond yields dented gold’s appeal as a hedge against risks, adding to weak physical demand in dragging down gold prices. The expected upbeat payroll report due on Friday will keep bullion in check.
On technical front, a long lower shadow line was formed on Monday, suggest subdued support. Support can be found at the May-low at $1,214 an ounce, and is expected to move down further to the key mark of $1,200 if the level is breached.

Silver
Silver tracked gold, plunging 3.25 percent. Despite of support at $16, the MACD and momentum index suggest a weak tendency. Silver prices are expected to fall further to $15.8 if the level of $16 is breached.

II. Commodities
Crude Oil
Oil rose more than 2 percent on Monday, resuming its longest stretch of daily gains in more than five years, bolstered by tropical storm, seasonal maintenance, and diminished U.S. rig counts and output. Sharp increase in oil production by the OPEC and African oil producers may cap oil’s gains and reverse the upward trend. Brent crude futures closed up 91 cents, or 1.9 percent, to $49.68 a barrel. The price rose 5.2 percent last week for the first weekly gain in six. U.S. crude futures closed up $1.03, or 2.2 percent, to $47.07 a barrel, an almost one-month high. U.S. crude futures trading volumes were low a day before the U.S. Independence Day holiday.

Copper
Copper traded down 0.1 percent at $5,930 a tonne, under pressure from LME stocks that have gained 14 percent since Wednesday to hit 278,275 tonnes.

Soybean
U.S. soybean futures edged higher on Monday on technical buying including short-covering and spillover from rising corn and wheat prices. CBOT August soybean rose 23 cents to $9.70 per bushel after hitting 9.80-3/4, the highest since May 10. New crop November soybean rallied 26 cents to 9.80-3/4 per bushel. August soymeal closed up $7.60 to $313.80 per short ton. August soyoil gained 0.20 cents at 33.24 cents per lb.

Dealing Room, ICBC Beijing Branch
Yang Hui