gtag('config', 'AW-986975862');   Asia Market Update 27th February 2019 | 1 Stop Gold

MARKETS/MACRO

          Stocks in the U.S. posted modest declines on Tuesday, oscillating between positive and negative territory
as Federal Reserve Chairman Jerome Powell faced the Senate Banking Committee. The DJIA eased –
0.13% to 26,057.98 points, the S&P 500 declined -0.08% to 2,793.90 points and the Nasdaq Composite
shed -0.07% to 7,549.297 points. Housing starts in the U.S. collapsed to a more then two-year low during
December, down -11.2% MoM (exp: -0.1%) from a negatively revised +0.4% in November (prev: +3.2%).


          The monthly print saw starts to a seasonally adjusted annual rate of 1.078 million units, while building
permits outpaced expectations to edge +0.3% MoM higher (exp: -2.6%). Meanwhile S&P/Case-Shiller
reported that house prices in the U.S. increased +4.18% YoY (20-city metro), the smallest gain since
November 2014. The Conference Board’s measure of consumer confidence in the U.S. pushed higher
during February, increasing to 131.4 (exp: 124.9) from 121.7 previously. Volatility across financial market
and the Government shutdown were largely responsible for the previous months’ decline.

PRECIOUS

          A mixed and stunted session for the precious complex during Asian trade today, interrupted somewhat
during Shanghai hours by a CME outage. The CME was hit with a technical issue around the Chinese
open, forcing the exchange to halt pricing in precious metals for around two-and-a-half-hours. Spot
pricing was available during the outage, however saw wider spreads than usual and as a result flows
were heavily reduced.

          The market re-opened with an offered bias, pulling away from the USD $1,330
pivot and testing toward USD $1,327 during the afternoon, with the yellow metal still relegated to the
recent USD $1,325 – $1,330 range. Expectations of positive trade news out of U.S. – China negotiations
should see equity markets supported over the near-term and potentially weigh upon bullion, however
global growth concerns, the U.S. – North Korea summit and Brexit remain risk events, underpinning
bullion, or at the very least providing supportive interest toward USD $1,320 – $1,325. Resistance levels
centre upon the USD $1,330 pivot, extending to targets at USD $1,335 – $1,346. Data today includes U.S.
wholesale inventories, U.S. factory orders and U.S. durable goods orders.

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