I. Precious Metals
Gold
Gold prices bounced off a seven-week low on Monday as safe haven demand ebbed away following pro-EU candidate Emmanuel Macron's victory in the French presidential election. The removal of the political risk leaves investors refocusing on the pace of monetary policy normalization in Europe and the United States. The European Central Bank is expected to have more room to tighten policy as the euro zone's economic recovery gathers pace. In the United States, data out on Friday showed the unemployment rate dropped to near a 10-year low, which is seen as reinforcing the case for a U.S. interest rate hike next month. While money managers cut their net-long position in COMEX gold for the first time in seven weeks in the week to May 2, U.S. government data showed late Friday. Spot gold steadied after touching 1,224.86 an ounce, its lowest since March 17 and just above the 100-day moving average.
On technical front, gold steadied after holding above the 100-day moving average. The precious metal fell 3.2 percent last week, its biggest percentage fall since November, gathering pace for upward momentum. But it is expected to remain weak in near term as it bounced off highs for two days in a row, suggesting hefty resistance.

Silver
Silver snapped its losing streak in the last trading session of last week. But spot silver dipped 0.1 percent to $16.28 an ounce as safe haven demand ebbed away following pro-EU candidate Emmanuel Macron's victory in the French presidential election. While money managers cut their net-long position in COMEX silver by 25,602 lots to the lowest since January, data showed. Investors shall be cautious and keep away of blind bargain hunting amid hefty bearish sentiment.

II. Commodities
Crude Oil
Oil prices rose on Monday in volatile trading, bolstered by statements from major oil-producing countries suggesting that OPEC and non-OPEC supply cuts could be extended into 2018. Saudi Energy Minister Khalid al-Falih on Monday issued more forceful comments about OPEC's plans, saying the cartel would "do whatever it takes" to rebalance the market. He said a deal on cutting output could extend early into next year. Kuwait's oil minister Essam al-Marzouq echoed those concerns, saying Monday that there is "almost consensus about the importance of extending the agreement for at least six months." Benchmark Brent crude settled up 24 cents, or 0.5 percent, at $49.34 a barrel. U.S. light crude gained 21 cents to $46.43 a barrel. Oil prices have been under pressure of late, amid investor concerns the global supply glut is not receding as fast as expected.

Copper
Copper slid to a four-month low on Monday after data showed a sharp drop in imports into China, the world's biggest consumer, feeding pessimism over demand following hefty inflows into London Metal Exchange inventories last week. China's April copper imports fell 30 percent month on month to 300,000 tonnes, data from the General Administration of Customs showed, and were down by a third from a year ago as a subdued outlook for industrial activity weighed on demand. Three-month copper on the London Metal Exchange closed 1.8 percent down at $5,486 a tonne, having earlier touched $5,462.50, its lowest since Jan. 4. We have some new data coming out this week and next, especially industrial production from China. Given the decrease in the PMI level recently, everybody is worried that that will translate into lower industrial production on a yearly basis, and if that happens the copper price will be negative again.

Soybean
Chicago soybean futures ended in slightly negative territory on Monday, on prospects for improving crop weather in the U.S., and the spillover of a declining corn. CBOT July soybeans fell 8-1/4 cents at $9.64-3/4 a bushel, weighed down by downbeat export report. The USDA reported that the pace of soybean export inspections was pegged at 349,385 tons, lower than trade estimates of 375,000-600,000 tonnes. Analysts saw soybean planting at 16 pct complete ahead of USDA’s planting report due next Monday. CBOT July soymeal closed down $3.30 at $313.60 per short tonne, tracking soybean. CBOT July soyoil rose 0.04 cents to 32.94 cents per lb, boosted by short-covering.

Dealing Room, ICBC Beijing Branch
Huang Han