I. Precious Metals
Gold
Gold prices fell 1 percent to a three-week low on Monday, pressured by rising U.S. stocks and an agreement that averted a U.S. government shutdown, dampening demand for non-interest paying bullion. Many financial markets in Asia and Europe were closed for the May Day holiday, resulting lower liquidity. U.S. Congressional negotiators hammered out a bipartisan agreement on a spending package to keep the federal government funded through Sept. 30, averting a government shutdown. Spot gold was down to an almost one-month low of $1,256.28 an ounce. The market was waiting for the Federal Reserve's two-day policy meeting. Any changes in the Fed's statement could cause volatility in gold prices.
On technical front, gold pulled back in major technical indicators with support at the 200-day moving average of $1,252.87 and the 50-day moving average of $1,250. The resistance can be found at the key mark of $1,300. Prices are expected to remain rangebound. Investors are recommended to cut their positions ahead of Fed's statement on interest rates, which could trigger a new trend in near term.

Silver
Spot silver extended its losing streak to the 11th consecutive day on Monday, down 1.9 percent to $16.87 an ounce, after falling to $16.78, matching the May 10 session low. The MACD and momentum index still showed a bearish tone. A technical rebound can be expected in near term after recent sharp losses. The support and resistance can be found at $16.60 and the 100-day moving average of $17.388 respectively.

II. Commodities
Crude Oil
Oil slipped 1 percent on Monday as rising crude output on Libya and the United States countered OPEC-led production cuts aimed at clearing a supply glut. Signs of slower-than-expected growth in manufacturing in China and a weaker figure for U.S. manufacturing sentiment also weighed on expectations for oil demand and the market. Global benchmark Brent crude for July settled down 53 cents to $51.52 a barrel, while U.S. crude for June dropped 49 cents, or 1 percent, to $48.84 a barrel. U.S. crude has lost nearly 9 percent since April 11, weighed down by the market's impatience with the slow pace of inventory drawdown around the world even after major oil producers agreed late last year to cut production by 1.8 million barrels per day for the first half of 2017. The Organization of the Petroleum Exporting Countries and participating non-OPEC countries meet on May 25 to discuss whether to extend that reduction. The compliance of the OPEC's output-cut deal will determine oil prices in near term.

Copper
LME was closed for public holidays.

Soybean
Chicago soybean futures rallied 1.4 percent on Monday, boosted by short-covering after the CFTC's report showed speculators' short positions at more-than-one-year high. Soybean futures hit the peak since March 29. USDA's weekly crop report is expected to show that farmers had completed 12 percent of their planned planting area. CBOT July soybeans ended up 14 cents at $9.70-1/4 a bushel.

Dealing Room, ICBC Beijing Branch
Li Nan