MKS PAMP Group - Daily Asia Wrap

Range Asian Hours (from Globex open)
|--------------+--------------+--------------+--------------+--------------|
|              |     GOLD     |    SILVER    |   PLATINUM   |  PALLADIUM   |
|--------------+--------------+--------------+--------------+--------------|
|     OPEN     |  1241.80/30  |   16.21/24   |    998/01    |    544/47    |
|--------------+--------------+--------------+--------------+--------------|
|     HIGH     |  1242.40/90  |   16.21/24   |    998/01    |    545/48    |
|--------------+--------------+--------------+--------------+--------------|
|     LOW      |  1229.20/70  |   16.02/05   |    985/88    |    537/40    |
|--------------+--------------+--------------+--------------+--------------|




MACRO: U.S. Retail Sales dipped -0.3% MoM (exp: +0.1%) during March from
February's upwardly revised flat print (prev: -0.1%). Auto sales slumped
-2.1% MoM to weigh upon the headline figure, while sales ex autos inched
+0.2% MoM higher (exp: +0.4%). The control group that excludes autos,
gasoline, building material and food services added +0.1% MoM (exp: +0.4%).
Producer Prices in the U.S. retreated for the second consecutive month
during March, easing -0.1% MoM (exp: +0.2%) from -0.2% during January,
while core PPI (ex food and energy) also dipped -0.1% (exp: +0.1%) to
follow January's flat read. According to the Federal Reserve's Beige Book,
eleven out of twelve districts expanded through March and into April.
Improving labour conditions, increased wages and an uptick in consumer
spending helped brighten the mood as most businesses reported that they
expect a similar pace of growth going forward. Equity markets in the U.S.
again posted strong gains on Wednesday as investors ignored the soft retail
sales data and instead focused on the growth in Chinese exports. The DJIA
added +1.06% to end the session at 17,908.28 points, while the S&P 500
closed +1.00% higher as financials (+2.25%) surged on the back of a
positive J.P. Morgan earnings report.

Industrial Production within the Eurozone declined -0.8% (exp: -0.7%)
during February, however the pullback wasn't completely unexpected
following January's +1.9% increase. February's figure was largely driven by
a -10.5% collapse in Ireland and a -4.4% decline in Greece. On a YoY basis,
industrial production increased +0.8% (exp: +1.3%), well down on January's
+2.9% YoY print. Strong performances by resources related stocks following
the Chinese export data helped propel European equity markets higher
overnight as the weak regional data was cast aside. The French CAC 40 led
regional markets higher to add +3.32%, while the German Dax closed +2.71%
higher. Strong gains within the Italian banking sector helped the
FTSEurofirst 300 climb +2.56% and the major miners in London surged to see
the UK FTSE 100 gain +1.93%.

Oil markets dipped overnight following comments from Saudi Arabia's oil
minister down playing the chances of an agreement on production cuts at the
upcoming meeting in Doha. WTI slipped -0.5% to close around USD $41.50 per
barrel after trading as high as USD $42.42 per barrel in early New York
trade, while Brent crude retreated -1% after paring early New York gains
late in trade.


PRECIOUS: It was generally a USD play overnight for the precious complex as
the yellow metal turned lower on the back of a sharp rally in USD/JPY and a
weakening EUR against the Greenback. Support around USD $1,240 was the key
for gold as multiple tests of this level were met with solid bids. A brief
period of respite following the softer than expected U.S. data saw gold
test USD $1,250, however interest was short lived and the metal eased in
late trade to return -0.5% and close towards the key support level. Silver
was again the star of the show overnight, turning sharply higher in London
after a weak Asian session. The grey metal saw strong support around USD
$16 before surging to a fresh 2016 high of USD $16.305 in London. The move
higher was met with a sharp reversal to USD $16.09 before New York breached
the London and 2016 high to print USD $16.335. Platinum saw whippy price
action, testing below USD 990, however able to recover back towards USD
$1,000 late in trade, while palladium continues to struggle from a lack of
interest.


ASIA TODAY: Early session Asian trade today saw gold tip toe around the
overnight low print, with little in the way of direction on the Tokyo open.
With a lack of liquidity in early trade and participants focused on the
Chinese open, gold tripped stop loss orders at the overnight low of USD
$1,240 and collapsed almost USD $10 on a 6,500 lot sweep to USD $1,231.10
(GCM6). The metal staged a modest recovery leading into the Chinese open,
before again being sold sharply lower to briefly trade underneath the
support around USD $1,230. With 'risk on' sentiment flowing into Asia
following the overnight rally in equity markets and a further leg higher in
USD/JPY above the New York high print, gold continued to face significant
headwinds throughout the afternoon. The first key support for the metal
sits around USD $1,228 - $1,230 (Fibonacci retracement of the Dec - Mar
move), while below this USD $1,205 - $1,210 has supported recent moves
lower. On the topside we should see resistance at USD $1,240 and USD
$1,250. Silver pared its overnight gains during today's Asian session,
however continues to trade resiliently. The grey metal only retreated
modestly on the Pre-China gold collapse, however a more pronounced leg
lower in early Chinese trade saw the session low of USD $16.02 printed. As
we saw overnight, USD $16 is a formidable support for silver and will be
the key to the metal outpacing the 2016 high printed in New York yesterday.

Regional equity markets pushed higher today, led by a stunning 3.23% gain
to the Japanese Nikkei as the Yen continues to weaken against the
Greemback. Data releases tonight includes Eurozone CPI, The Bank of England
Rates Decision, U.S. Initial Jobless Claims and U.S. CPI.