I. Precious Metals
Gold

Gold was flat in a narrow range on Thursday, first dipping as the dollar rose and then rising as the dollar moved lower, but bullion's gains were limited by higher U.S. Treasury yields.

Financial market players were concerned about a possible U.S. government shutdown, but this did not move gold very much.

On chart, gold closed at the 10-day moving average, forming a cross-star pattern. Spot gold was unchanged at $1,327 an ounce. Earlier in the session, it touched its lowest since Jan. 12 at $1,323.

U.S. House Republicans said late on Thursday they had made progress toward passing a short-term extension of government funding to avert a politically embarrassing shutdown, after a day of tough negotiations and confusion when President Donald Trump offered mixed signals on the stopgap plan.

For months, the Republican-controlled Congress has been struggling to fund the government, which is now operating on its third temporary funding extension since the 2018 fiscal year began on Oct. 1.

Following an early evening meeting of conservative leaders, House Speaker Paul Ryan and his top lieutenants, House Majority Leader Kevin McCarthy proclaimed to reporters: "We're in very good shape" for passage on Thursday night.

The growing opposition led some senators to discuss the possibility of a new approach: passing one- or two-day extensions of government funding to avoid a shutdown while lawmakers continue to negotiate.

The U.S. dollar fell. But the 10-year U.S. Treasury yield hit its highest since March 2017 at 2.61 percent in European trade, keeping the dollar on hold. Gold is expected to remain under pressure before the dollar index crossed below 90.

Silver

Silver gained 0.27 percent at $16.96 per ounce. On technical front, silver slipped for three straight days, but managed to hold around the 10-day moving average, as the dollar index was supported by the key mark of 90.

Concerns over a U.S. government shutdown dampened the dollar, while boosted precious metals. Despite of the lift by higher U.S. Treasury yield, investors were cautious abut the dollar, while hold a bullish view on precious metals. Silver prices are expected to consolidate at highs in near term.

II. Commodities
Crude Oil

Oil was little changed on Thursday, as prices eased early in the session, but were supported by a record drawdown of U.S. crude stockpiles at the Cushing, Oklahoma delivery hub.

Brent crude, the global benchmark, settled down 7 cents at $69.31 a barrel. On Monday it touched $70.37, the highest since December 2014. U.S. crude was down 2 cents at $63.95, having hit its highest since December 2014 on Tuesday.

Crude is just below its highest price since December 2014, supported by supply cuts led by the Organization of the Petroleum Exporting Countries and concern that unrest in producer nations such as Nigeria could further curb output. Nigerian militants threatened to attack the country's oil sector in the next few days, potentially hampering supplies in Africa's largest exporter.

U.S. crude inventories fell 6.9 million barrels last week, compared with forecasts for a 3.5 million-barrel draw, the U.S. Energy Information Administration said. Crude supplies at the Cushing, Oklahoma delivery hub for U.S. crude futures fell 4.2 million barrels in the week, the largest draw since at least 2004.

After falling the previous week due to cold weather, U.S. crude production rose to 9.75 million barrels per day last week. OPEC's monthly report on Thursday raised its forecast for oil supply from non-members in 2018.

Copper

Copper rose on Thursday as a robust performance by China's industrial sector helped to lift the biggest metal consumer's economic growth in the fourth quarter. Benchmark copper closed 0.6 percent higher at $7,076 a tonne after the metal used in power and construction touched a four-week low in the previous session.

China's construction markets and industry have held up better than people thought. China's economy to grow by 6.8 percent in December and by 6.9 percent in 2017. China’s investment in real estate development grew 7 percent year on year in 2017, 0.5 percentage point slower than a month earlier, while the newly built floor space was up by 7 percent year on year, up from November’s 6.9 percent. 

Soybean

U.S. soybean futures climbed for a fourth straight session on Thursday on concerns over dry conditions in Argentina. Chicago Board of Trade March soybeans gained 4-1/4 cents to $9.73 a bushel, approaching a two-week high.

Soybean and soymeal futures gained the most as traders monitored weather in Argentina, the world's top soy product supplier and where parts of the crop belt have experienced a very dry start to the growing season.　Soymeal futures rose to a one-month high, while soyoil fell to a 6-1/2-month low due to heavy U.S. stockpiles and lower palm oil prices.

March soymeal was up $4.10 a ton at $328.40. March soyoil fell 0.28 cents to 32.23 per pound. The trading volume of soybean, soymeal and soyoil is expected at 109,274 lots, 92,772 lots, and 109,274 lots respectively.

Dealing Room, ICBC Beijing Branch
                        Lv Yan