The new trading week kicks-off with the German IFO report. Economists predict a small improvement across all three sub-categories. Gold has moved higher as fears over the new coronavirus pushed traders into safe-haven assets. The fragile economy cannot afford disruptions caused by this new virus, but China already banned tours through affected provinces. How will this previous metal react to today’s economic data? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.

New home sales out of the US, together with a regional manufacturing report, are also expected to have an impact on price action. A sell-off in equity markets, combined with a weaker US Dollar, will further enhance the upside momentum of Gold. Will bulls be able to push through the 2020-high above $1,600 and add to gains, or are bears preparing a push to the downside? Today’s fundamental analysis will take a look at the upside potential as well as the downside risk in this currency pair.