Gold has regained its bullish momentum as traders had a chance to digest the phase-one trade deal signed by the US and China last week. As doubts bout the commitments made in the deal have increased, risk-averse traders started to take advantage of the sell-off in this precious metal. Gold has now completed a breakout above its horizontal support area, but where will price action move to next? Today’s fundamental analysis will take a look at price action in both directions.

Economic data out of Japan showed a bigger than previously reported contraction in industrial production. The PBOC grabbed headlines this morning after it opted to keep interest rates unchanged. Economists predicted a five basis point reduction in the 1-Year Loan Prime Rate. Will bulls rally around gold as the global economy is slowing down faster than expected, or will bears attempt another breakdown? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.