PMI data out of the Eurozone disappointed yesterday, especially out of the manufacturing sector. This pointed towards more weakness for the global economy. Trade worries have increased after the Chinese delegation cut its US trip short and returned home. This has provided a boost to gold as traders are once again seeking safe haven. After support around the $1,500 mark pushed this precious metal higher, will bullish momentum increase and push gold above resistance? Today’s fundamental analysis will take a look at the upside potential in this commodity and weight the downside risk.

Today’s German IFO data could provide an increase in volume, especially if it follows yesterday’s PMI data with a downside surprise. US housing as well as consumer confidence will be released later in the session together with a regional manufacturing index. How will this impact price action? The US consumer has remained resilient during the economic downturn so far, how much more can be borrowed? Will today’s data further accelerate gold to the upside? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month in profits.