I. Precious Metals
Gold

Gold prices rose on Wednesday to reach a two-week high as U.S. data showing solid home sales but a fall in mortgage applications pushed the dollar to a two-week low. Gains in bullion were limited, however, by a rise in U.S. bond yields to nine-month highs after the Congress passed the country's biggest tax overhaul in decades.

Spot gold was up 0.3 percent at $1,265.26 an ounce, after rising to $1,267.81, the highest since Dec. 6. U.S. gold futures settled up 0.4 percent at $1,269.60. Gold has risen by around 2.5 percent from a five-month low on Dec. 12. The next resistance can be found at the 20-day moving average of $1,266.18.

Silver

Silver was up 0.3 percent at $16.17 an ounce, in line with gold’s movement. Gains were pared during the session. Technical front, the white metal climbed along with the 5-day moving average. With upward momentum remaining on track, investors can buy on dips. The next resistance can be found at $16.22 an ounce.

II. Commodities
Crude Oil

Crude prices rose on Wednesday, supported by a larger-than-expected drop in U.S. inventories and the continued outage of the North Sea Forties pipeline system.

U.S. crude stocks fell by 6.5 million barrels, more than expected, in the week to Dec. 15, while gasoline stocks rose 1.2 million barrels, less than anticipated, the Energy Information Administration said on Wednesday, even though refining activity rose.

West Texas Intermediate crude futures settled up 53 cents at $58.09 a barrel, while Brent crude ended up 76 cents at $64.56 a barrel.

Technical front, U.S crude remained wide rangebound, not far from the upper band. Investors are recommended to keep away from long trade. The next resistance can be found at $58.50.

Copper

Copper hit a two-month high on Wednesday as the dollar fell and investors remained upbeat about global growth prospects as a U.S. tax overhaul neared completion and China's economy remained on a firm footing.

Three-month copper on the London Metal Exchange ended up 1.5 percent at $7,0454 a tonne, crossing the psychologically important $7,000 mark and hitting its highest since mid-October at $7,070.50.

Overall it seems investor confidence has come back as commodities rose across the board. In China, leaders at an economic planning meeting said Beijing will deepen structural reforms. We revised our bearish view on copper, and suggest that investors could do bargain hunting at proper time.

Soybean

U.S. soybean futures fell to three-month lows on Wednesday, extending its losing steak to the fifth consecutive day, as rain in parts of South America was seen favoring crops there.

Softer soyoil futures also boosted selling in soybean futures. January soybeans fell 2 cents to $9.54 a bushel after earlier falling to $9.52-3/4, the lowest since Sept. 12. Losses accelerated on technical selling after prices crossed below Tuesday’s lows.

Soymeal futures closed up, while soyoil futures posed the largest one-day loss in two weeks. January soymeals were up $0.5 at $315.7 per short tonne. December soyoil ended down 0.26 cents at 32.96 cents per pound.

Dealing Room, ICBC Beijing Branch
                        Huang Han