MKS PAMP Group - Daily Asia Wrap

Range Asian Hours (from Globex open)
|--------------+--------------+--------------+--------------+--------------|
|              |     GOLD     |    SILVER    |   PLATINUM   |  PALLADIUM   |
|--------------+--------------+--------------+--------------+--------------|
|     OPEN     |  1213.80/10  |   16.60/62   |    938/41    |    728/31    |
|--------------+--------------+--------------+--------------+--------------|
|     HIGH     |  1220.80/10  |   16.83/85   |    949/52    |    733/36    |
|--------------+--------------+--------------+--------------+--------------|
|     LOW      |  1213.80/10  |   16.60/62   |    938/41    |    727/30    |
|--------------+--------------+--------------+--------------+--------------|
|  LAST LEVEL  |  1217.20/50  |   16.81/83   |    948/51    |    733/36    |
|--------------+--------------+--------------+--------------+--------------|




MACRO: The Chicago Fed National Activity Index improved during October,
increasing to -0.08 (exp: 0.00) from a downwardly revised -0.23 (prev:
-0.14). Each of the four components that make up the headline figure posted
gains MoM, however remained within negative territory overall. The 3-month
moving average inched down to -0.27 from -0.20 in September. Equity markets
in the U.S. resumed their uptrend overnight, receiving support from a
rebound in oil prices and a pull back to the USD. The DJIA added +0.47% to
end the session at a record high close of 18,956.69 points, while the S&P
500 saw gains to energy (+2.20%) and materials (+1.07%) send the bourse to
a record high close of 2,198.18 points for a +0.75% gain. The Nasdaq
Composite was buoyed to a record close by gains to Apple and IBM, ending
+0.89% higher at 5.368.86 points, while the Russell 2000 (+0.5%) index also
posted a record close. European equity markets crept into positive
territory overnight, as gains to energy and mining stocks offset weak trade
by Italian banks on concerns over political instability and the ability of
smaller lenders to raise capital if and when required. The FTSEurofirst 300
led regionals higher, ending the session with a +0.32% gain, while the
German Dax added +0.19% and the U.K. FTSE 100 finished +0.03% higher as
commodity related companies found support from a softer USD. Following ten
consecutive sessions of gains, the USD eased marginally overnight as
participants took stock of the recent gain that saw the longest winning
streak in over 3-years. The EUR was able to recover back above 1.0600 and
GBP surged above 1.2500. Crude oil prices spiked on Monday following
comments from Russian President Vladimir Putin supporting a cut in
production.


PRECIOUS: Gold edged higher on Monday to take back Friday's declines,
touching a pre-New York high of USD $1,217.90 before easing marginally
during U.S. hours. A softer USD buoyed the yellow metal throughout Asian
and London trade, however a reversal during early new York hours capped the
session gains underneath Friday's high print. Interest looks to be creeping
back into the market as the latest positioning data showed the reduction in
spec positioning was not as great as participants were expecting,
furthermore the recent outflows of ETF's (overnight totaling 300,000
ounces) continued to be well absorbed. Silver traded mixed overnight,
running into resistance at Friday's high print leading into New York hours
and softening late to find a base around USD $16.50, handing back -0.7%.
Platinum outperformed, closing +0.9% higher after finding interest around
USD $925, while palladium recovered from early New York offers late in
trade, however was unable to test back toward the Asian session high.


ASIA TODAY: Gold found support in Asian trade today as USD/JPY softened
following the news that Japan experienced a magnitude 7.4 earthquake in the
early hours of Tuesday morning. As the story developed during the Comex
close, gold opened well bid in Asia to test the overnight high leading into
the Shanghai open. The far East continued to trade at an elevated premium
over loco London gold, extending to over USD $10 and showing little sign of
abating. Initial interest out of Shanghai saw the metal through USD $1,220,
before profit taking around the figure pared gains back to pre-Shanghai
levels. Option expiry tonight is likely to see gold loosely tethered toward
USD $1,200, however the metal looks to be supported by strong interest
around USD $1,200 and we should see this as supportive over the short term.
Silver found strong interest during Asian trade today, opening bid in both
Tokyo and Shanghai to extend to a USD $16.83 high, while both white metals
continued to run higher following strong closes in New York. Data releases
tonight includes Eurozone Consumer Confidence, U.S. Richmond Fed
Manufacturing Index and U.S. Existing Home Sales.