I. Precious Metals
Gold

Spot gold was down 0.1 percent at $1,277.80 an ounce on Thursday, trading in a tighter range compared with the previous two sessions. The U.S. House of Representatives approved a broad package of tax cuts sought by senior lawmakers and President Donald Trump. The House vote shifted the tax debate to the U.S. Senate. Investors were not surprised by the result, reflected by quietness in precious metals and forex market. But equity investors were more aggressive.

The House bill would reduce the corporate tax rate to 20 percent from 35 percent, a core part that was agreed by both the U.S. House of Representatives and the Senate in the draft plan, suggesting it’s quite certain that the bill will be passed after some discussion and modifications.

Gold was little changed on Thursday, consolidating within range. We maintain our view and trading strategy: 1) current prices provide a good entry point for long-term investment; 2) bull market is not expected before all expectations for the next month are priced in; 3) we did not see reasons to short gold in the medium and long term despite of the possibility of dipping down.

Silver

Silver was up 7 cents, recouping the 6-cent losses recorded in the past two sessions. We need to start considering the direction for breakthrough in the next week, although we believe it’s unlikely this week. In view of its performance in the past one month, we believe the white metal is more likely to move up. Investors can wait for detailed trading strategy after key breakthrough is made.

II. Commodities
Crude Oil

Oil prices ended lower again on Thursday on increased concerns about growth in U.S. production and inventories, despite expectations that major world producers will extend a supply-cut deal later this month.

Brent crude futures settled 51 cents, or 0.8 percent, lower at $61.36 per barrel, running its streak of losses to five straight days. U.S. light crude fell for a fourth consecutive session, ending down 19 cents, or 0.3 percent, at $55.14 a barrel.

Analysts believe there won't be clarity on the market's direction until after OPEC meets on November 30. Investors are not recommended to build short bets as prices are likely to rebound after a five-day decline.

Copper

Benchmark copper on the London Metal Exchange closed 0.5 percent down at $6,737 a tonne on Thursday on persistent worries over Chinese demand. We said yesterday, “The focus is still on China. Copper prices are expected to fall if it cannot regain its ground today.” We maintain our view as the base metal closed the session in the negative territory.

Soybean

CBOT January soybean futures shed 4-1/4 cents to $9.72 a bushel on disappointing weekly U.S. Department of Agriculture export sales data and as improving crop weather in Brazil. December soyoil ended down 0.32 cent at 34.43 cents per pound. December soymeals were down $0.80 at $310.50 per short tonne.

Dealing Room, ICBC Beijing Branch
                          Zhao Yifei