MKS PAMP Group - Daily Asia Wrap

Range Asian Hours (from Globex open)
|--------------+--------------+--------------+--------------+--------------|
|              |     GOLD     |    SILVER    |   PLATINUM   |  PALLADIUM   |
|--------------+--------------+--------------+--------------+--------------|
|     OPEN     |  1234.50/80  |   17.71/73   |   1014/16    |    773/75    |
|--------------+--------------+--------------+--------------+--------------|
|     HIGH     |  1235.20/50  |   17.76/78   |   1015/17    |    775/77    |
|--------------+--------------+--------------+--------------+--------------|
|     LOW      |  1231.50/80  |   17.67/69   |   1010/12    |    768/70    |
|--------------+--------------+--------------+--------------+--------------|
|  LAST LEVEL  |  1233.50/80  |   17.69/71   |   1011/13    |    769/71    |
|--------------+--------------+--------------+--------------+--------------|




MACRO: In the absence of any major economic data out of the U.S. on Monday,
equity markets eased lower on the back of mixed earnings results and
uncertainty over the Trump administration's policy announcements. The DJIA
eased -0.09%, however was able to hold onto the psychologically important
20,000 point level to end the session at 20,052.42 points. The S&P 500 saw
weakness from energy (-0.89%) and telecoms (-0.80%) take the bourse -0.21%
lower, while the Nasdaq Composite eased -0.06% to end the session at
5,663.552 points. Even reassurance from ECB President Mario Draghi that
stimulus measures would continue to be available should they be required
was not enough to push European equities higher overnight, as regional
election concerns continue to bubble to the surface. The Stoxx Europe 600
slipped -0.68%, while the German Dax was whacked -1.22% as a positive
factory orders print couldn't outweigh heavy trade to automotive giant
Volkswagen. Factory orders in Germany rebounded during December, spiking
+5.2% MoM (exp: +0.7%) from a downwardly revised -3.6% (prev: -2.5%) during
November. The monthly print was the highest rate since July 2014 and saw
the annualised print to +8.1% YoY (exp: +4.2%) from +2.0% previously. In
the U.K. the FTSE 100 (-0.22%) ended the session modestly softer as miners
eased, with the exception being Rangold Resources (+4.15%) following a +76%
jump in Q4 net profit. Oil futures traded well offered during European and
U.S. hours on Monday, posting the largest single-session decline since mid
January on concerns of higher U.S. output. WTI slumped -1.5% to end just
over USD $53 per barrel, while Brent crude tanked -1.9% to hand back the
previous week's gains in their entirety. The USD held onto the majority of
Asian session gains on Monday, however trailed off late in New York as
USD/JPY triggered stops through 112.00.


PRECIOUS: Gold continued to trade bid on Monday following Friday's strong
close, consolidating above USD $1,220 during Asian / European hours, before
taking a further leg higher in New York to close above the 100 DMA for the
first time since October. The tepid wage growth revealed in Friday's job
report combined with strong technical breaks to the top-side and an ailing
USD (USD/JPY below 112.00) helped drive the metal to a USD $1,235.75 high
late on Monday, adding +0.9% for the session to close at the highest level
since November 10th. ETF's continue to pick up the slack left by falling
Chinese and Indian physical demand, adding a further +150k ounces on Monday
to follow a similar increase on Friday. Gold traded quietly during Asian
trade today, edging marginally lower on light profit taking, however was
able to consolidate above USD $1,230 and withstand a recovering USD during
afternoon hours. Participants still look to play on the long side, however
we may see profit taking push the metal towards the 100 DMA at USD
$1,220.25, whereby resting bids should restrict any further declines.
Resistance comes in toward USD $1,250, while the 200 DMA sits above this at
USD $1,263. Silver finally broke through its recent resistance at USD
$17.73 late in trade on Monday, closing above the level for a +0.85%
session gain. Light profit taking around the Chinese open restricted any
test toward the 200 DMA at USD $17.90, however the metal was well supported
around USD $17.70 in light afternoon flows and will look to target the
top-side resistance over the short-term. Platinum edged marginally lower
during Asian trade today following the overnight gains, while palladium
eased toward USD $770 on the Chinese open following the +1.8% overnight
gain. Data releases tonight includes German Industrial Production, U.K.
House Prices and the U.S. Trade Balance.