I. Precious Metals
Gold
Gold prices fell to the lowest in more than six weeks on Thursday, on expectations of further U.S. interest rate increases this year and receding political uncertainty in Europe. The dollar index initially strengthened after the U.S. Federal Reserve played down any threats to this year's planned rate increases, sending real yields up. What is more, optimism about an EU-friendly election outcome in France has calmed investor's nerves. As a result, investment assets that have safe haven characteristics, such as the yen and gold, have been sold off. Any turnaround is not expected in near term with room for further decline. The focus is now shifting to Friday's U.S. non-farm payrolls report for April, which could reinforce expectations of higher U.S. interest rates in June.
On technical front, spot gold was down 0.8 percent at $1,227.94 an ounce after touching $1,225.20, the lowest since March 17, and extending losses below the 50- and 200-day moving averages. Support was seen around $1,221, the 100-day moving average. In the very near term we continue to expect that gold will trade moderately lower. But a technical rebound is still likely.

Silver
Silver continued to fall, down 0.6 percent at $16.295, having hit a four-month low of $16.17. It has fallen around 13 percent since reaching a five-month high of $18.65 in mid-April. Technically, silver is expected to move further south with strong downward momentum. But as losses extend, demand for technical rebound is increasing. A short-lived correction can be expected.

II. Commodities
Crude Oil
Oil prices plunged to five-month lows on Thursday amid record trading volume in Brent crude, as OPEC and other producers appeared to rule out deeper supply cuts to reduce the world's persistent glut of crude. Closing prices, below $50 a barrel, were the lowest since Nov. 29, thereby erasing all the market gains that followed a late 2016 announcement by the Organization of the Petroleum Exporting Countries it would cut output. The slide steepened after the OPEC delegates downplayed the chance that their group and other producing countries would deepen their output cuts when they meet on May 25. They did say current output cuts were likely to be extended. But analysts say non-OPEC members may struggle to extend production cuts. U.S. crude ended the session 4.81 percent lower at $45.52 per barrel after falling as much as 5.29 percent to an intraday bottom of $45.29, the lowest since Nov. 29. Brent crude settled at $48.38, or 4.75 percent lower, after tumbling as much as 5.17 percent during the session.

Copper
Copper fell to five-months lows on Thursday, posting its biggest two-day loss since July 2015, on rising inventories and worries over cooling demand. Inventories in London Metal Exchange (LME) warehouses rose nearly 33,000 tonnes on Wednesday, exchange data showed, bringing this week's increase to 64,000 tonnes, or 25 percent. That followed data this week showing that U.S. factory activity slowed in April while growth in China's manufacturing sector slowed more than expected. A report on Thursday showed that new orders for goods manufactured in the United States rose for a fourth month in March, but by less than expected. LME copper closed 1 percent down at $5,543 a tonne, having touched $5,494, its lowest since Jan. 4. Prices registered their biggest one-day drop since Sept. 2015 in the previous session, falling 3.5 percent.

Soybean
Chicago soybean futures ended in slightly negative territory on Thursday, dampened by across-the-board selloff in commodities. USDA reported weekly soybean export sales of 331,300 tonnes (old-crop and new-crop combined), below market forecasts. CBOT July soybeans were 1 cent lower at $9.78-1/2 a bushel.

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