Gold prices surged past the key $1,600 level after Iran retaliated to the killing of General Qasem Soleimani in Iraq. It fires over twelve ballistic missiles at two Iraqi military bases housing US troops. Gold reversed after the initial spike, as no casualties were reported. Traders hope for a calm response out of the US, prompting profit-taking in this precious metal. How will price action trade into the weekend? Today’s fundamental analysis will take a look at price action in both directions.

Tensions in the Middle East are overshadowing economic reports. Japanese labor cash earnings posted a bigger contraction than expected, while Australian building approvals surprised to the upside. German factory orders soured the mood with a surprise monthly contraction, indicating the global economic slowdown is healthy. Traders are now looking forward to Eurozone confidence data as well as the US ADP report. How will Gold react after the release? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.