I. Precious Metals
Gold
U.S. Treasury Secretary Steven Mnuchin told the Financial Times yesterday that the Trump administration's timetable for tax reform is set at August. But this timetable was deemed as aggressive and unrealistic by analysts. Gold turned higher to $1,291.51 an ounce, bolstered by a softer dollar as President Donald Trump remains under great pressure to push forward its economic policy. Vice President Mike Pence arrived at Japan yesterday, reassuring Japan of American commitment to its safety. But his stance softened against North Korea, saying U.S. seek to solve the North Korea issue in peace. Bullion was driven up jointly by the French presidential election, North Korea tensions, President Trump’s challenge in pushing forward his economic policy, which could fade away as time goes by.
In France, investors remained nervous ahead of the first round of the country's presidential election this Sunday, which will give more guidance to investors. In North Korea, market expects peaceful negotiation to deal with the tensions, instead of resorting to arm forces. The fact that the dollar index had been holding above 99 in the past months despite of setbacks endured by President Trump, suggesting that market participants still have some expectations over his economic policy. Gold is consolidating at highs. Investors shall be cautious and restrain from chasing highs as the metal would be subject to the aforementioned factors.

Silver
Spot silver closed at $18.2886 an ounce, slipping for the second consecutive day. On technical front, the metal has a dimmer outlook compared with gold as the daily MACD suggests a rising likelihood of pullback. Investors are recommended to turn to profit-taking from net long positions.

II. Commodities
Crude Oil
Oil prices fell on Tuesday, touching their lowest in 11 days as U.S. government reported that shale oil output in May was expected to post the biggest monthly increase in more than two years. Global benchmark Brent crude futures swooned as low as $54.61, the lowest since April 7, then settled down 47 cents at $54.89 a barrel. U.S. WTI futures settled at $52.41 a barrel, down 24 cents. U.S. oil producers picked up drilling as oil prices held above $50, pushing shale oil output in May on track to post the biggest monthly increase in more than two years. Saudi Energy Minister Khalid al-Falih said it was too early to discuss whether extending the six-month production deal more than one month before the OPEC’s May 25 meeting. Oil prices are expected to remain rangebound with a bearish outlook.

Copper
Base metals fell on Tuesday as geopolitical worries from sabre-rattling over North Korea to a snap UK general election hurt investor appetite for cyclical assets. London Metal Exchange copper closed 2.1 percent down at $5,573 a tonne, having touched its weakest since early January at $5,569. Losses across the base metals were driven by concerns over geopolitical tensions. Copper is expected to remain rangebound in the near term, and to rise in the medium and longer term out of slight short supply.

Soybean
U.S. soybean futures fell on Tuesday following a bearish monthly crush report and on profit-taking after hitting a two-week high on Monday. Chicago Board of Trade soybean futures ended down 7-1/4 cents at $9.46 a bushel. CBOT May soyoil fell 0.66 cents to 31.14 cents per lb. CBOT soymeal dropped $1.2 to $312.2 per short ton. On technical front, soybeans are expected to consolidate around 940 with support at the level.

Dealing Room, ICBC Beijing Branch
Qin Gang