I. Precious Metals
Gold
The U.S. Labor Department reported mixed employment data in May despite the unemployment rate falling to a 16-year low of 4.3 percent. Nonfarm payrolls increased by 138,000 in May, well short of the 185,000 expected by economists, casting a doubt on U.S. economic outlook no matter whether the Federal Reserve would increase interest rate this year after the report.
Spot gold was up 1.1 percent at $1,279.58 per ounce, shackling off the constraint of the trading range in the past two weeks and opening up the potential for more gains. Investors are not recommended to short gold at current level due to high risks.
On stop-loss, we believe that market bears may consider stopping loss if their preset target is hit, unless big surprise takes place. But investors shall not count on this as the likelihood is low.

Silver
Silver rallied 1.4 percent, making effective breakthrough despite of the pressure of selloff in the four-hour chart. On technical front, we maintain our bullish view on silver in the long run. Investors are recommended to keep their automatic investment plan, and avoid short trading in the near term. There still exists some potentials for long trading. Investors may long the metal according to their risk appetite due to the terrorist attack and incoming election in UK.

II. Commodities
Crude Oil
Brent crude futures settled at $49.95 per barrel, down 68 cents or 1.3 percent, while U.S. West Texas Intermediate crude futures fell 70 cents to settle at $47.66 per barrel or 1.5 percent. Crude closed down on worries that U.S. President Donald Trump's withdrawal from the Paris climate accord could accelerate U.S. production and flood the global oil market. But the biggest risk in crude market is uncertainty among investors as prices could gap down, or surge on rumors of Paris climate accord compliance by state governors or big companies in the U.S.
Investors with short positions of Brent over $52 and of WTI above $50 could bet on May lows. We maintain our view that investors shall stay on the sidelines before market sentiment is fully released.

Copper
Three-month LME copper finished 0.6 percent weaker at $5,665, failing to test the 50-day moving average again on a weaker dollar. On fundamentals, Chinese base metals demand is expected to taper off in the second half of the year. Copper is not expected to see extended gains before China’s deleveraging process steadies or becomes foreseeable.

Soybean
Chicago Board of Trade July soybeans settled up 9 cents at $9.21-1/4 per bushel on bargain hunting and higher demand for U.S. soybeans due to drought in Spain. July soymeal closed up $4.40 to $301.90 per short ton. July soyoil ended down 0.24 cents to 31.01 cents per lb.

Dealing Room, ICBC Beijing Branch
Zhao Yifei