Conflicting messages by US President Donald Trump and out of China have sowed more confusion about the state of the US-China trade war. While so called technical phone calls between both negotiating teams are common practice, Trump has claimed that a high level request has been made in order to resume trade talks. This has increased the layer of uncertainty for forex traders, but boosted demand for gold which continues to extend its stellar advance. Global economic data continues to disappoint and so far this week has added to weaker-than-expected data around the world, most notable the German IFO data as well as US durable goods order excluding the volatile transportation sector. How much further can the rally in gold extend? Subscribe to the PaxForex Daily Fundamental Analysis and find out now!

Chinese industrial profits rebounded, but final German GDP data for the second-quarter is expected to confirm the contraction which was reported before. A trio of reports on the health of the US housing sector will gather attention today and so is the reading on consumer confidence. US consumers have proven resilient in the wake of the trade war and a slowing economy. Will this trend continue and how much more can the US consumer borrow in order to support the economy? As a perfect economic storm is brewing, should forex traders add more gold to their portfolios? Today’s fundamental analysis will take a look at the upside potential in this precious metal and weigh the downside risk.