MKS PAMP Group - Daily Asia Wrap

Range Asian Hours (from Globex open)
|--------------+--------------+--------------+--------------+--------------|
|              |     GOLD     |    SILVER    |   PLATINUM   |  PALLADIUM   |
|--------------+--------------+--------------+--------------+--------------|
|     OPEN     |  1195.40/70  |   17.11/13   |    989/91    |    740/42    |
|--------------+--------------+--------------+--------------+--------------|
|     HIGH     |  1202.90/20  |   17.21/23   |    993/95    |    754/56    |
|--------------+--------------+--------------+--------------+--------------|
|     LOW      |  1193.80/10  |   17.09/11   |    987/89    |    740/42    |
|--------------+--------------+--------------+--------------+--------------|
|  LAST LEVEL  |  1200.80/10  |   17.19/21   |    991/93    |    749/51    |
|--------------+--------------+--------------+--------------+--------------|




MACRO: Consumer Spending in the U.S. increased at the fastest pace in three
months during December, gaining +0.5% MoM (exp: +0.5%) from +0.2%
previously. When adjusted for inflation, real personal spending increased
+0.3% MoM (exp: +0.3%) from +0.2% previously. Personal Income edged +0.3%
higher MoM (exp: +0.4%) from a +0.1% gain previously, while the personal
savings rate slumped to 5.4%, the lowest level since March 2015. The
closely watched PCE index increased +0.2% (exp: +0.2%) to mark the
strongest reading in over two years. On an annualised basis PCE increased
+1.6% (exp: +1.7%) from +1.4% previously to mark the strongest rate since
September 2014. Core PCE inched +0.1% MoM higher (exp: +0.1%) and +1.7% YoY
(exp: +1.7%). Pending Home Sales in the U.S. bounced back during December,
increasing +1.6% MoM (exp: +1.0%) to follow November's -2.5% decline. Chief
economist at the National Association of Realtors, Lawrence Yun noted that
inventory remained tight and without additional supply the latest gains are
unlikely to be sustained. Equity markets in the U.S. started the week on a
disappointing note, as the Trump administration's immigration policy
created uncertainty for investors. The DJIA booked its worst daily
performance since mid-October to hand back -0.61%, falling below 20,000
points to end the session at 19,971.13 points. Major movers overnight were
Caterpillar (-2.22%), DuPont (-2.19%) and Chevron (-1.73%). The S&P 500
recovered late in trade from early weakness, however still booked a -0.6%
decline to log its worst single session performance for 2017. The bourse
saw broad based weakness led by by energy (-1.76%), materials (-1.04%) and
information technology (-0.82%). The Nasdaq also logged its worst
performance of 2017, declining -0.83%. The CBOE volatility index jumped the
most in three months on Monday, surging +12.3% to 11.88. Markets across
Europe started the week lower following Trump's immigration announcement,
with airlines and leisure related shares the hardest hit. The Europe Stoxx
600 fell -1.05% in its worst daily performance since November, while the
German Dax declined -1.12% as investors ignored the latest German CPI
figures, the highest level since July 2013. In the U.K. the FTSE 100 sunk
-0.92% as oil producers and miners led declines.


PRECIOUS: Gold wiped away late Asia / early European declines on Monday to
push higher as global equity markets faltered. Uncertainty created
following Trump's immigration announcement saw gold edge higher in early
Asian trade on Monday, however offers toward USD $1,195 restricted gains in
thin trade to see the metal underneath USD $1,190 leading into European
trade. London hours saw a low print of USD $1,188.30, however the weakness
soon evaporated as investors jumped out of equity markets and into
safehaven assets. A bid USD into New York trade kept a lid on top-side
gains to see the metal hold underneath the Asian high print, however
interest in JPY soon had USD/JPY back below 114.00 and saw gold to a test
of USD $1,200 before easing to a close around USD $1,195. Gold vols ticked
marginally higher on macro risks overnight, while of note is the fact that
silver 1m vols are at the lowest level since September 2014. Gold jumped
out of the gate during Asian hours today, once again knocking on the door
of USD $1,200 in early flows. The announcement that acting attorney general
Sally Yates had been 'relieved of her duties' after refusing to support
President Trump's immigration policy provided the impetus for gold to break
through USD $1,200, holding above the figure throughout afternoon trade.
Continued uncertainty surrounding the Trump administration is likely to
support the yellow metal over the short term as global equities remain
under pressure. Support for the metal now broadly sits around USD $1,190 -
$1,195, while resistance comes in around the recent high USD $1,215 -
$1,220. Silver held above USD $17 amid Asian and European weakness on
Monday and while finding a bid in New York with gold, pulled back from a
USD $17.27 high to end modestly lower. The grey metal pushed higher with
gold during Asian trade today, breaking above USD $17.20 and holding onto
the majority of the session gains into European hours. Platinum edged
higher during Asian hours today to consolidate the late session gains
overnight, while palladium triggered stops through USD $750 to touch a USD
$754 high before pulling back during afternoon trade today. The BOJ kept
its policy rate unchanged today, while upgrading its growth forecast and
leaving its inflation forecast unchanged. Data tonight includes French GDP
& CPI, German Unemployment, Eurozone Unemployment, GDP & CPI, U.S. Consumer
Confidence and the Chicago PMI.