I. Precious Metals
Gold
Gold pared gains from a five-month high on Monday, losing steam as U.S. Treasury yields turned higher and the dollar came off its lows, after rising geopolitical tensions over North Korea spurred earlier safe-haven buying in bullion. Spot gold was up 0.29 percent at $1,289.39 an ounce, after hitting its highest since early November at $1,295.42. This round of rally was driven by safe-haven sentiment. Ongoing tensions in North Korea and the Middle East should also keep the markets rather nervous. Gold will likely retain a measure of strength heading into the French elections in about one week's time. With the first round of France's presidential election on April 23, an unpredictable outcome is pushing some pollsters to calculate the most extreme runoff scenarios.
On technical front, gold retains under the pressure of the key mark of $1,300, but the daily chart shows signs of turnaround. The MACD and RSI index indicate that prices might pull back in coming sessions. In near term, investors shall keep an eye on tensions in North Korea and the Middle East, and France's presidential election. Investors may cautiously increased their net long positions in case the situations deteriorate, or short on highs if the situations eased.

Silver
Spot silver turned down 0.15 percent to $18.516 an ounce after touching a five-month high of $18.649. The metal was under the pressure of $18.6 after crossing over the resistance of $18.4. On technical front, the daily MACD suggests prices are expected to pull back in near term. Investors are not recommended to keep longing the metal.

II. Commodities
Crude Oil
Crude oil prices slipped 1 percent on Monday in subdued trading after a long Easter holiday weekend, on news of rising U.S. shale production and profit-taking following three straight weeks of gains. Benchmark Brent crude futures ended the session 53 cents lower at $55.36 while U.S. West Texas Intermediate (WTI) crude futures settled down 53 cents at $52.65 a barrel. On Monday, the Energy Information Agency (EIA) said U.S. shale production in May was set for its biggest monthly increase in more than two years, adding to worries that these increases would undermine efforts of the world's top producers to rein in a glut. The Organization of the Petroleum Exporting Countries will meet on May 25 to consider extending output cuts beyond June to reduce a glut that has depressed prices. Oil prices are expected to remain rangebound ahead of the OPEC meeting.

Copper
The LME was closed for the long Easter holiday.

Soybean
U.S. soybean futures fell on Monday after the National Oilseed Processors Association said in a monthly report that its members showed that processors crushed fewer soybeans than expected during March compared with same period last year. CBOT May soybeans dropped 2-1/4 cents to close at $9.53-1/4 a bushel. CBOT May soyoil rose 0.61 cents to 31.8 cents per lb as the U.S. Commerce Department is expected to initiate formal anti-dumping investigations of biodiesel imports from Argentina and Indonesia. Supported at $9.40, soybeans are expected to consolidate around the level.

Dealing Room, ICBC Beijing Branch
Qin Gang