MKS PAMP Group - Daily Asia Wrap

Range Asian Hours (from Globex open)
|--------------+--------------+--------------+--------------+--------------|
|              |     GOLD     |    SILVER    |   PLATINUM   |  PALLADIUM   |
|--------------+--------------+--------------+--------------+--------------|
|     OPEN     |  1347.10/60  |   20.17/20   |   1176/79    |    723/26    |
|--------------+--------------+--------------+--------------+--------------|
|     HIGH     |  1348.00/50  |   20.30/33   |   1179/82    |    724/27    |
|--------------+--------------+--------------+--------------+--------------|
|     LOW      |  1340.30/80  |   19.90/93   |   1171/74    |    719/22    |
|--------------+--------------+--------------+--------------+--------------|




MACRO: The Job Openings and Labor Turnover Survey (JOLTS) showed job
openings in the U.S. increased 110,000 to a seasonally adjusted 5.624
million (exp: 5.675 million) during June. The increase in the headline
print was supported by broad based gains, in particular within the
manufacturing and construction sectors. Layoffs shrunk to 1.6 million to
mark the lowest level since September 2014, while the layoff rate eased to
1.1%, the lowest level since November 2013. The rate of hiring increased to
+3.6% from +3.5% previously and the quits rate stayed a 2% for the third
consecutive month. The U.S. budget deficit improved during July to a
reported -$112.8 billion (exp: -$115 billion) from a deficit of -$149.2
billion in July 2015. over the 12-months through July the deficit
represented 2.6% of GDP, easing from 2.8% of GDP in the 12-months through
June. Revenues inched up just +1.2%, the slowest annual pace in nearly
6-years, while outlays increased +1.0%, the slowest pace in more than
2-years. Renewed weakness across the energy sector saw equity markets in
the U.S. turn lower overnight in thin summer trade. The DJIA handed back
-0.20% to end the session at 18,495.66 points, while the S&P 500 declined
-0.29% as energy (-1.41%) and financials (-0.77%) weighed upon the bourse.
Treasury prices increased for the second straight session on Wednesday,
pressuring yields to their largest two-day fall in a month as demand
accelerated on the back of weaker equities. The 2-year yield eased 2.4 bps
to under 0.7%, while 10-year yields sank 3.6 bps to 1.509%. Equity markets
across Europe ended mixed on Wednesday as energy markets put downwards
pressure upon the major bourse's. Gains to the Royal bank of Scotland and
Rolls Royce helped the U.K. FTSE 100 outpace its European counterparts,
adding +0.22% to print its highest close since June 2015. The German Dax
pulled back -0.39% after entering bull market territory on Tuesday, while
the FTSEurofirst 300 eased -0.28%.


PRECIOUS: Gold ended higher on Wednesday, however pared gains during New
York hours following strong demand out of Asia. The yellow metal made the
most of a soft session for the USD, trading through USD $1,345 pre China
before further interest out of Shanghai saw the metal test USD $1,350 into
their lunch break. Short covering through USD $700 saw palladium gap higher
while the Chinese were out, providing the catalyst for gold to push through
USD $1,350 in afternoon trade. A modest bid during early London took the
metal as high as USD $1,355, while New York saw USD $1,357.45 before
sellers wrestled back control and sent gold to a USD $1,342.90 low. Late
New York interest kept the metal buoyant into the close, ending the session
around USD $1,346. Silver surged higher on Wednesday, breaking back above
USD $20 for the first time since Friday's NFP related sell off to test USD
$20.50 (pre-payroll level was USD $20.43) before pulling back in New York.
The grey metal was able to hold around USD $20.15 into the close, booking a
gain of around +1.3% from opening levels in Asia. Palladium was the big
story on Wednesday and as previously mentioned, saw a huge stop loss run
through USD $700 during the Asian session, gapping to USD $744 before
settling lower leading into London. Early European interest saw the metal
turn higher once again, before late offers in New York held gains to +4.2%
(at one stage XPD was up a staggering +7.3%). Platinum crept higher in
Asia, buoyed by strength in palladium to test USD $1,180, before a further
leg higher in London saw the session high of USD $1,193.80 printed.
Downwards pressure in New York restricted any further gains as the metal
settled around USD $1,180 for a +2% gain from opening levels in Asia.


ASIA TODAY: The overnight softness continued during Asian trade today as
the USD regained ground following yesterdays Sell off. Muted early session
price action gave way to weakness out of China as gold slipped below USD
$1,345 in light trade. The metal held a narrow range throughout afternoon
trade as weakness into London tested USD $1,340, where resting bids
restricted any further moves lower. Gold will continue to look to USD
$1,330 as a strong support, while resistance on the top-side initially sits
at USD $1,360 and beyond this USD $1,374. Initial bids in silver were
exhausted pre-shanghai and the metal put up little resistance against early
Chinese offers. Bids around USD $20.10 kept the metal buoyant for the
majority of the session, before a sharp sell-off sent the metal through USD
$20 leading into London trade, however bids soon emerged to support the
metal higher once again. Data tonight includes French and Italian CPI, U.S.
Import Prices and Initial Jobless Claims.