MKS PAMP Group - Daily Asia Wrap

Range Asian Hours (from Globex open
|--------------+--------------+--------------+--------------+--------------|
|              |     GOLD     |    SILVER    |   PLATINUM   |  PALLADIUM   |
|--------------+--------------+--------------+--------------+--------------|
|     OPEN     |  1227.60/90  |   17.45/47   |    943/45    |    675/77    |
|--------------+--------------+--------------+--------------+--------------|
|     HIGH     |  1231.10/40  |   17.50/52   |    948/50    |    676/78    |
|--------------+--------------+--------------+--------------+--------------|
|     LOW      |  1212.50/80  |   17.08/10   |    935/37    |    669/71    |
|--------------+--------------+--------------+--------------+--------------|
|  LAST LEVEL  |  1218.50/80  |   17.20/22   |    942/44    |    676/78    |
|--------------+--------------+--------------+--------------+--------------|




MACRO: Consumer Sentiment in the U.S. surged higher during November
according to the latest University of Michigan survey results. The
University's preliminary reading showed a jump to 91.6 in November (exp:
87.9) from October's final read of 87.2. The report showed both near-term
and long-term inflation expectations increased, while the current economic
conditions index increased to 105.9 from 103.2 and the reading of future
expectations moved higher to 82.5 from 76.8. U.S. equity markets ended
mixed on Friday as the Trump-led flight into the stock market continued.
The DJIA tacked on +0.21% to end the session at 18,847.66 points, a new
all-time high and the largest weekly gain (+5.4%) since December 2011. The
S&P 500 saw weakness to energy (-1.66%) and healthcare (-1.49%) take the
bourse -0.14% lower, restricting the weekly gain to +3.8%. The Nasdaq
composite outperformed to end the session +0.54% higher at 5,237.11 points
for a +3.8% weekly gain, while the Russell 2000 small cap index outpaced
the large cap stocks, surging +2.46% to end at a 12-month high of 1,280.84
points for a staggering +10% weekly gain. European equity markets ended
mixed on Friday as mining shares traded under pressure. The German Dax
outperformed regionals to end +0.36% higher after a positive session from
Deutsche Bank (+3.55%). The FTSEurofirst 300 slipped -0.56% after early
session strength, while a bid GBP during European hours weighed upon the
U.K. FTSE 100 to see the bourse -1.43% lower. The USD continued to
strengthen on Friday, seeing USD/JPY test toward 107.00, while EUR/USD
traded below 1.085. U.S. Treasury markets were closed for the Veterans Day
Holiday.


PRECIOUS: Gold took a further leg lower during New York trade on Friday,
unable to hold support around USD $1,250, falling to a five-and-half-month
low as U.S. equity markets and the USD continued to push higher. The yellow
metal held a relatively tight range throughout Asian and European hours,
however a bid USD in New York soon saw gold through USD $1,250 as ETF's
unloaded a further 500k ounces. The metal finally came to rest around USD
$1,220, -3.3% lower for the session and -6.0% lower for the week. Silver
was the major news on Friday, collapsing a staggering -7% as the grey metal
broke below USD $18 on a stop loss run. Platinum traded at the mercy of the
USD to hand back -3.5%, while palladium saw whippy price action, however
ultimately succumbed to the USD strength to loose touch with the USD $700
handle and end -3.1% lower.


ASIA TODAY: The precious complex opened to a mild bid tone during Asian
trade today, as early demand saw gold above USD $1,230 and silver push
above USD $17.50 to recover from New York closing levels on Friday. The
early interest was soon reversed around the Shanghai open, seeing gold
through Friday's low print to USD $1,213 in early Chinese trade, in-line
with USD/JPY breaking to a 107.59 high. A solid Shanghai premium of USD $8
above loco London gold did little to spur demand for the metal as sustained
USD strength kept price action below USD $1,220 throughout afternoon trade.
After trading to an election day high of USD $1,336, gold has collapsed a
staggering -9% to current levels and scrabbles to find support amid a
strengthening USD. The yellow metal should initially see support toward USD
$1,200, the May 30th low this year. Silver continued to trade under
pressure today in Asia following Friday's spectacular fall, testing toward
USD $17 in early Shanghai trade before finding support around the early
October low. Both platinum and palladium struggled during early session
trade before recovering leading into European hours. Data releases tonight
includes Eurozone Industrial Production.