MKS PAMP Group - Daily Asia Wrap

Range Asian Hours (from Globex open)
|--------------+--------------+--------------+--------------+--------------|
|              |     GOLD     |    SILVER    |   PLATINUM   |  PALLADIUM   |
|--------------+--------------+--------------+--------------+--------------|
|     OPEN     |  1257.50/00  |   15.93/96   |    984/87    |    592/95    |
|--------------+--------------+--------------+--------------+--------------|
|     HIGH     |  1266.50/00  |   16.12/15   |    989/92    |    594/97    |
|--------------+--------------+--------------+--------------+--------------|
|     LOW      |  1257.50/00  |   15.92/95   |    981/83    |    591/94    |
|--------------+--------------+--------------+--------------+--------------|




MACRO: Initial Jobless Claims in the U.S. inched higher during the week
ended March 12, adding 7,000 to a seasonally adjusted 265,000 (exp:
268,000) from 258,000 the week prior. It was the 54th consecutive week that
claims had printed below 300,000, notching up the longest streak since
1973. The March 12 figure took the four-week moving average 750 claims
higher to 268,000, while continuing claims popped 8,000 to 2.235 million
(exp: 2.235 million) for the week ended March 5. The Philadelphia Federal
Reserve's Manufacturing Business Outlook for March indicated a pickup in
activity as both current new orders and shipments improved. The index for
current activity surged to 12.4 (exp: -1.5) from -2.8 in February, the
first positive read in seven months. Further support to the headline print
came from the delivery time index, printing its first positive result in 11
months, while the employment index added 4 points, however remained within
negative territory. The Conference Board's U.S. Leading Index inched higher
during February, adding +0.1% (exp: +0.2%) after declining -0.2% during
January. February's gains were tempered somewhat by weakness in housing
permits, stock prices and consumer expectations. Equity markets in the U.S.
extended their winning run overnight as the USD continued its post FOMC
slide and oil jumped surged above USD $40 per barrel. The DJIA added +0.90%
and in doing so turned positive for the first time in 2016, while the S&P
500 gained +0.66% as materials (+2.2%) and industrials (+2%) led nine out
of the ten components of the bourse higher.

The Bank of England kept their benchmark interest rate at a record low of
0.5% overnight in a unanimous vote. The Monetary Policy Committee blamed
the recent sterling depreciation on uncertainty surrounding the upcoming
European Union referendum and noted weaker global trade would offset this
and keep inflation in check over the short term. The UK FTSE 100 added
+0.42% overnight as commodity related stocks reacted positively to both the
Bank of England decision and the FOMC announcement the previous day.
Further gains to the EUR/USD weighed upon regional markets elsewhere in
Europe (resources aside) as the German Dax sank -0.91% and the FTSEurofirst
300 eased -0.13%. In other central bank news on Thursday, Norway's Norges
Bank cleaved 0.25bps from their benchmark rate, taking it to +0.50%.


PRECIOUS: Gold lagged the remainder off the precious complex overnight,
exhausting early London bids into the New York open, however able to find
support around USD $1,255 to close +0.3% higher. Following the previous
session's stunning FOMC driven move higher, the metal spent the majority of
Thursday's session in consolidation mode, generally tracking EUR/USD higher
in London and largely ignoring oil's U.S. session rally. ETF interest was
again evident overnight, with a further 160k ounces accumulated.  It was a
very similar story for platinum, the white metal adding +0.4% and testing
toward USD $1,000 before paring gains in the last hours of trade. Silver
(+2.3%) and palladium (+2.6%) were the standout performers overnight as
both metals broke through key technical top-side levels and look likely to
be positioning themselves for further gains.


ASIA TODAY: Support towards USD $1,255 was again evident for gold during
Asian trade today as the yellow metal reversed the previous session's soft
close to climb back above USD $1,260 leading into the Shanghai open. Early
Chinese interest propelled gold to a USD $1,266.50 session high at an
on-shore premium against loco-London gold of around USD $1, however the run
higher was relatively short lived and interest softened during afternoon
trade. Gold should see broad support around USD $1,255 - $1,262, with
targets on the top-side extending to USD $1,271 and beyond this USD $1,285.
Silver climbed back above USD $16 on early Shanghai interest to move
through the overnight high print, looking technically strong as it breaks
through the January 2015 down-trend and targets towards USD $16.50 -
$16.70.

Currency markets were generally higher in Asian trade today, led by a
+1.73% gain to the Shanghai Composite, while the hang Seng added +0.61%.
Data releases tonight are thin on the ground as we see German PPI and the
University of Michigan Consumer Sentiment out of the U.S.