I. Precious Metals
Gold

Gold edged lower on Wednesday, seeing support from $1,280. The U.S. economy grew faster than initially thought in the third quarter, notching its quickest pace in three years, as increases in business investment in inventories and equipment offset a moderation in consumer spending.

The U.S. economy has gathered steam this year and will warrant continued interest rate increases amid a strengthened global recovery, outgoing Federal Reserve Chair Janet Yellen told Congressional leaders on Wednesday in her final scheduled testimony on Capitol Hill. She described an economy where the jobs market remains strong and economic growth has hit three percent for two quarters running, above the Fed's estimate of U.S. potential and likely enough for an expected December rate increase. The dollar steadied, dragging down gold.

On technical front, gold failed to breach over the key mark of $1,300, and pulled back below the 100-day moving average. But the overall upward momentum remained intact. Holding above the near-term resistance of $1,300 would open up an upward path.

Silver

Silver tracked gold, down to the lowest since early October at around $16.50. In the near term, the yellow metal is moving toward the lower band of previous trading range. In case of crossing below the range, a downward path can be expected.

II. Commodities
Crude Oil

Oil prices dipped on Wednesday as investors cashed in profits at highs. Six ministers from OPEC and non-OPEC oil producers including Saudi Arabia and Russia met in Vienna on Wednesday - one day ahead of a full OPEC gathering - and recommended extending the cuts to the end of 2018. At present, the cuts expire in March. But oil’s losses will be limited in near term as the meeting will dominate the market.

Copper

Benchmark copper on the London Metal Exchange closed down 0.7 percent at $6,760 a tonne after hitting $6,737, the lowest since Nov. 17. The metal used in power and construction has fallen 3.5 percent from Friday's close as concerns over demand in top consumer China pushed investors to sell. Technical front, copper prices dropped for a third day, likely seeking support from the 100-day moving average.

Soybean

CBOT soybeans settled lower in Wednesday in a seesaw trading as technical selling was offset by concerns over the dry areas of Argentina. January soybeans fell half a cents to $9.92-1/2 a bushel. The USDA announced a private sale of 263,000 tonnes of soybeans to China. The trading volume for soybean, soymeal and soyoil is expected to stand at 135,854 lots, 144,164 lots and 134,678 lots respectively.

Dealing Room, ICBC Beijing Branch
                         Cheng Yu