I. Precious Metals
Gold
Gold fell to a three-week low on Thursday, weighed down by a stronger dollar as investors began to assess the potential for another U.S. rate hike later in the year, supported by data showing a strong U.S. jobs market. The losses in gold were limited, however, with bullion underpinned by myriad global uncertainties, including a report that U.S. President Donald Trump was under investigation. The U.S. Federal Reserve raised interest rates by a notch as expected on Wednesday and indicated further tightening before the end of the year.
Spot gold fell 0.5 percent to $1,254.05 an ounce, after touching $1,251.18, the weakest since May 24. U.S. gold futures for August delivery settled down 1.7 percent at $1,254.60.
The number of Americans filing for unemployment benefits fell more than expected last week, pointing to shrinking labor market slack that could allow the Federal Reserve to raise interest rates again this year despite moderate inflation growth. The dollar index rallied after the jobs data.
On technical front, gold is losing steam in the medium term after breaching below the 10-day, 20-day and 30-day moving average successively. But in the near term, bullion is expected to steady, consolidating along the 30-day moving average.

Silver
Silver shed 0.8 percent to $16.74 per ounce after slipping to $16.64, the lowest since May 19. It hit $16.89 during the session underpinned by a report that U.S. President Donald Trump was under investigation. The white metal is expected to steady at current level if no more bearish news was heard in the near term.

II. Commodities
Crude Oil
Oil prices settled more than half a percent lower on Thursday after hitting a six-month lows, as high global inventories fed fears that rising crude production in Nigeria, Libya and the United States will feed the global supply glut despite output cuts from OPEC and other producing countries .
The dollar rose to its highest in more than two weeks, further weighing on oil by making it more expensive for buyers using other currencies. Saudi Arabia’s oil exports are expected to fall below 7 million barrels per day this summer, according to industry sources familiar with the matter, and Russian oil exports were seen as broadly flat in the third quarter.
Still, Brent crude fell to a session low of $46.70 a barrel, its weakest since May 5 and near six-month lows. It settled down 8 cents at $46.92 a barrel. U.S. crude settled down 27 cents at $44.46, after touching a six-month low of $44.32 a barrel.
Oil has slumped despite output cuts of 1.8 million barrels a day by the Organization of the Petroleum Exporting Countries and non-OPEC producers including Russia. On May 25, the countries said they agreed to extend the cuts nine months through next March. Yet crude prices have slid about 12 percent since that day as other countries have boosted output.
Libya and Nigeria have brought more oil online and that’s really hindering OPEC’s efforts. U.S. production is up 10 percent over the past year to 9.33 million bpd, close to top producers Russia and Saudi Arabia.
On Wednesday, crude prices fell nearly 4 percent after U.S. gasoline inventories rose unexpectedly and the International Energy Agency said growth in oil supply next year is expected to outpace demand even as global consumption exceeds 100 million barrels per day (bpd) for the first time.

Copper
Copper fell for a fourth day on Thursday after the Federal Reserve lifted U.S. interest rates and took a more hawkish than expected stance on future policy, boosting the dollar and weighing on assets priced in the U.S. Currency.
The recovery in copper prices from the early May lows to the recent highs was helped by the weakening dollar. But the dollar is expected to strengthen in the second half of this year, which should cause some headwinds for the metals markets. Overall, the outlook for Chinese growth will be another leading driver for copper prices.
London Metal Exchange copper did not trade at the close but was last bid down 0.7 percent at $5,661 a tonne. Copper inventories in London Metal Exchange warehouses fell by another 4,125 tonnes, exchange data showed, taking them to their lowest in more than six weeks.

Soybean
U.S. soy futures generated strength from a bullish report on U.S. crushing on Thursday, traders said. Soyoil futures also rose, hitting the highest since May 23, buoyed by the same report and technical buying. Soymeal futures, however, lowered. The gains of soybean were limited by forecast of rain in the U.S. Midwest. CBOT soyoil crossed over the 30-day, 40-day and 50-day moving average in a day. National Oilseed Processors Association said its members crushed 149.246 million bushels during May, the second busiest May on record, compared with 139.134 million bushels in April. CBOT July soybean futures settled 3 cents higher at $9.34-3/4 a bushel. July soymeal closed down $1.2 to $300.6 per short ton. July soyoil gained 0.65 cents at 32.74 cents per lb.

Dealing Room, ICBC Beijing Branch
Huang Han