Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

February 26th 2020

With US markets at all-time highs, forex traders will start the new trading week with a light economic calendar. Trade concerns have eased slightly, but remain far from being resolved. This morning’s Singapore trade data showed an unexpected monthly contraction in non-oil exports which served as a reminder that global trade remains weak. Gold has ended its strong sell-off as bulls rushed back into this precious metal. How will price action develop during today’s session?

Optimism which drove markets higher on the back of trade hopes is starting to show cracks, but yesterday’s Eurozone PMI data surprised to the upside. Safe-haven assets such as gold and Silver sold-off as capital rotated into riskier assets, but support levels in Silver prevented a bigger sell-off. Australian trade data showed a surprise increase in exports, but this precious metal maintained its bullish bias. How will Silver react after European data will be released?

Chinese industrial profits contracted for a second consecutive month, but traders grew more confident that a permanent resolution to the US-China trade war can be found. Solid third-quarter earnings season has further boosted optimism that companies have performed well despite the uncertainties. Gold managed to advance as risks remain, a range of economic data out of the US has indicated the slowdown is accelerating. How will this precious metal perform to start the fresh week? Today’s fundamental analysis will take a look at price action in both directions.

Economic data out of the US once again disappointed and showed that the global economy is a lot weaker than expected, the US is no exception to the slowdown. This has boosted demand for safe haven assets such as gold and silver. Plenty of uncertainties remain embedded in the global system which is anticipated to provide a solid floor under silver. Can bulls capitalize and push price action back towards the 20 level? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.

Gold has corrected below the psychological $1,500 level, but found support as geopolitical tension remain high and the global economy accelerates its slowdown. Chinese GDP data came in below expectations, but September saw a pick-up in industrial production as well as retail sales. Japan showed that inflation remains absent in a country no strange to deflationary pressures. How will gold trade heading into the weekend? Today’s fundamental analysis will take a look at the upside potential as well as downside risk in this precious metal.

Following Friday’s “goldilocks” NFP report, markets rallied to close a wild first week of the fourth-quarter. Risk remains elevated with the Brexit clock ticking down, trade talks between the US and China set to continue this week and with earnings season set to get going. Gold prices are well supported after the psychological $1,500 mark, will bulls extend the rally and keep pushing this precious metal to the upside? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.

The Hong Kong manufacturing surprised to the upside, but remains deep in contractionary territory as protests weigh on all sectors of the economy. On the bright side, Australian retail sales managed to rebound from the previous month’s contraction. Silver was able to drift further to the upside as the global economy is slowing down faster than expected and recession fears are on the rise. How much more upside can bulls force and will Silver hit the key psychological 20.000 mark? Today’s fundamental analysis will explore price action in both directions.

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?

Forex traders started the new trading week with a series of disappointing Chinese economic data. Industrial production slowed down further in August against an expected rebound by economists. This darkened the global economic picture, adding to the slowdown was a weaker reading on retail sales which slipped further in August. Economists predicted an up-tick. Property investment as well as fixed assets excluding rural also eased further which overshadowed to decrease in the unemployment rate. Will this end the correction in Silver following a $2 drop?

Following the announcement that the US and China will resume high level talks in October, traders decided to book profits in gold and pushed this precious metal to the downside. The sell-off took price action below $1,500, but selling pressure started to recede as forex traders shifted the focus to the ECB meeting this week. Global central banks have increased their gold purchases which is supporting a longer term uptrend and as the global economy continues to cool further, gold is favored to reverse back to the upside and continue its rally. Is it time to re-enter the gold rally?

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.

All eyes will be in the Jackson Hole Symposium which kicked-off yesterday. Given the current market dynamics as well as expectations, it is almost certain that US Fed Chief Powell will disappoint the markets. It is widely anticipated that he will guide towards an interest rate cut in September, but some Fed officials cautioned that such a move should not be viewed as guaranteed. A conflicting message is likely to send markets lower and push traders into safe have assets such as gold and silver. Can silver attempt a breakout above resistance and extend its strong rally?

Gold prices extended their sharp rally and the breakout above the psychological $1,500 mark has further enhanced bullish sentiment. Economic data out of Asia offered more recession signals for the global economy. The New Zealand Business Manufacturing PMI slid into contractionary territory below 50 with a downward revision to the previous month. While the Singapore trade surplus for July came in higher than expected, on an annualized basis it is contracting with non-oil exports slumping. The Hong Kong riots are also darkening the overall economic outlook for Asian economies.

Forex traders will start the new trading week with a light economic calendar which showed New Zealand consumers reigned in their credit card spending for July which posted an unexpected contraction. The the Brazilian IBC-Br Economic Activity Index, expected to show a further slowdown in Latin America’s largest economy, and the US Monthly Budget Statement for July which is anticipated to show another large deficit, are the only economic releases which are likely to get any attention. Will this allow the rally in Silver, a safe haven asset, to extend?

The price of Gold is marching higher as trade tensions are escalating between the US and China. Following the announcement of new tariffs by the US, China has pulled out of the US agricultural market in a precision strike against Trump’s economic aggression. Trade tensions are only expected to worsen from here with some analysts pointing out that President Trump needs to get the trade war going as it boosts his political capital with the base of the Republican voters. How much more upside does Gold possess?

The ECB left interest rates unchanged yesterday, but analysts expected a 0.1% interest rate cut to be delivered by September. ECB President Draghi stated that the economic conditions are getting worse and said that governments need to pitch in. All eyes are on Germany which disagrees with the ECB’s outlook on the economy. German Finance Minister Olaf Scholz added “It’s not necessary or wise to act as if we were in a crisis.” Uncertainty will accompany the Euro over the summer months as deflationary pressures mount as the Eurozone economy is cooling off fast.

Gold continues to advance after geopolitical tensions provided enough bullish momentum for a breakout. The latest escalations in the Persian Gulf have further attracted investors who seek safe haven assets. Iran escorted a foreign oil tanker back to its shores on allegations that it was smuggling oil and the US military shot down an Iranian drone in response. Tensions between both countries are expected to escalate as the US seeks allies to pressure Iran over its foreign policy. How much more upside potential is in gold?

Economic data released out of Asia continues to paint a picture of a slowing global economy. The New Zealand ANZ Truckometer Heavy Index posted a contraction which suggests less cargo is being moved due to a lack of demand, UK BRC Like-for-Like Sales decreased once again and Australian consumer confidence eased while Japan reported a decrease in labor cash earnings. Gold prices remained stable at its new support level which embraces the 1,400 level on each side.

The Trump-Xi summit produced a temporary tariff truce which provided a short-term boost to sentiment, but for forex traders it is back to business as usual. The Bank of Japan injected more liquidity into the market and the Reserve Bank of Australia cut interest rates by 25 basis points to 1.00%. The Australian Dollar advanced slightly, helped by a rise in consumer sentiment. Gold prices ended their correction after dipping below $1,400, where a new support level is forming.

Gold price spiked above $1,400 as tensions between the US and Iran have escalated and US President Trump signed new sanctions against Iran after the downing of a spy drone. The US claims the drone was flying in international waters while Iran claims it entered its sovereign air space. In addition, Iran claimed that US hacking attempts against the Iranian military failed, but that it remains open to talks if the US removes sanctions. Price action in Gold accelerated to the upside as traders sought safe haven assets, but is a round of profit taking on the horizon?