GOLD: Eyes $1,942 and Global PMIs for further upside

Gold price needs to break the $1,942 barrier for a fresh uptrend.

Gold price is consolidating the latest uptick to near nine-month highs, as bulls take a pause contemplating the next move. Gold price is holding firmer so far this Tuesday, having witnessed good two-way trades a day before.

Eurozone, United States PMI data in focus
Amidst the US Federal Reserve (Fed) ‘blackout period’ and China’s Lunar New Year holidays, the focus is now shifting back to the fundamentals. Therefore, preliminary S&P Global Manufacturing and Services Purchasing Manager’s Index from the Eurozone and the United States. The business surveys will likely provide signals on the state of the global economy, which could have a significant impact on the expectations of a potential recession. Should the PMI reports across the euro area and from the US hint at increasing odds of a global recession, investors could scurry into the safe-haven US Dollar, triggering a sharp retracement in the Gold price from higher levels.

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