I. Precious Metals
Gold

Spot gold was up 0.5 percent at $1,294.44 an ounce, after hitting $1,299.13, its highest since Oct. 16, buoyed by a weaker dollar. A weaker dollar can stimulate demand for gold, making the precious metal cheaper for holders of other currencies. Also weighing on the dollar were the minutes from the latest Federal Reserve meeting, showing policymakers were concerned about low inflation and could be wary of raising interest rates rapidly.

On technical front, multiple moving averages interwoven, suggesting an incoming direction guidance. Resistance can be found at the key mark of $1,300. Holding above the level would open up an upward path.

Silver

Silver was also range-bound with its trading range narrowing, also pointing to an incoming selection on future direction. A breakthrough in gold would add steam to its momentum.

Technical front, the MACD index was approaching the axis zero. Investors could keep an eye on the movement around $17.30. In case of a breakthrough, investors may consider longing silver.

II. Commodities
Crude Oil

Oil prices fell on Monday, but remained at highs boosted by the prospect of extending output cuts by major oil producers, and the shutdown of one of the largest crude pipelines from Canada cut supply to the United States.
Oil prices are unlikely to pull back. But investors shall closely watch profit-taking in the market.

Copper

LME three-month copper hit $7,024 a tonne, its highest in a month, before reversing to finish with a 0.9 percent decline at $6,942. But the prices still remained at record highs, within distance from the key mark of $7,000. Investors shall closely watch the movement around the 50-day moving average. A downward breakthrough can be deemed as a reversal of current upward momentum.

Soybean

Chicago soybean futures firmed on Monday on concerns that dry weather in Argentina would harm crop development. The most-active soybean contract pared gains after topping $10 a bushel for the first time since Nov. 9. In the near term, soybean is expected to keep strengthening. The trading volume is expected to stand at 208,148 lots, 181,552 lots and 217,446 lots respectively.

Dealing Room, ICBC Beijing Branch
                         Cheng Yu